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Mesa Air Group Agreement Approved

The U.S. Bankruptcy Court approved Mesa Air Group's motion seeking to assume an amended master purchase agreement with Bombardier. As previously reported, under the agreement, Bombardier has agreed that: (i) there is no cure amount owing as a result of the modifications (ii) Bombardier's $310 million claims against Mesa Air Group and Mesa Airlines shall be allowed as a single claim against Mesa Air Group in the approximate amount of $75 million; and (iii) certain mutual payment obligations shall be offset and restructured that will result in immediate savings to the Debtors. In addition, the Debtors have agreed to release Bombardier from certain claims and obligations under the master purchase agreement and resolve certain other claims of Bombardier related to aircraft leases and spare engine parts.



Mesa Air Group Plan Approved

The U.S. Bankruptcy Court approved Mesa Air Group's Plan of Reorganization, clearing the way for the airline's emergence from Chapter 11. Following a successful and efficient 12-month restructuring, Mesa restructured its operations and is set to emerge as a leading regional air carrier flying primarily larger 70- and 86-seat regional jet aircraft. Mesa's creditors overwhelmingly supported the Plan of Reorganization, which also applies to the eleven wholly owned subsidiaries of Mesa that filed for Chapter 11 protection. Mesa and each of its subsidiaries are expected to emerge from Chapter 11 in February 2011. Among the company's restructuring accomplishments, Mesa extended the term of is code-share agreement with US Airways, Inc. through September 2015; eliminated over 100 unnecessary aircraft leases and financings that contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt; restructured aircraft leases and financings for Mesa's fleet of CRJ 200 and Dash 8 aircraft resulting in flexibility and no long-term lease exposure on the CRJ 200 50-seat regional jet aircraft; Mesa will emerge as a private company and issue new notes, common stock, and warrants to its creditors. "Mesa is now poised to enter its next chapter as a strong airline ready to compete in an ever changing industry. We are particularly proud of the fact that during our restructuring, Mesa achieved - and has consistently maintained - regional airline leading operational performance as reported by the U.S. Dept. of Transportation, including Mesa achieving the highest monthly On time performance of all regional airlines since May 2010. This strong operational performance is a tribute to the hard work and dedication of all of our employees and came during a time when many of our employees contributed to our financial savings through the taking of additional unpaid days off. This level of dedication and associated strong operational performance has provided a strong foundation upon which to return our airline to sustained profitability and future growth," said Jonathan Ornstein, Mesa's Chairman and Chief Executive Officer.




http://www.bankruptcydata.com/BankruptcyDataNewsNEW.asp