AirNet Systems' [ANS] mystery suitor backed out of the deal to buy the cargo carrier for $46.2 million.

Dec. 15 was the deadline AirNet set for the unnamed private equity firm to complete the due diligence and close the sale. Just before it held its long-delayed annual meeting on Dec. 16, AirNet issued a statement noting that it has been "unable to reach a definitive merger agreement" with the equity firm.

Instead of continuing to market the company, James E. Riddle, the board's lead director, said that the incumbent management team would continue to operate AirNet as an independent company. "Obviously, if we receive an offer from a qualified potential acquirer, we will consider it," he said.

Major AirNet shareholders had criticized the deal because the potential buyer offered only $4.55 a share when the stock had been trading for more than $5 a share at the time the deal was announced on Oct. 26. When AirNet posted its third quarter earnings, it reported a loss of $7.9 million on sales of $48 million due to a $16 million impairment charge.

One potential buyer, Universal Express [USXP] reiterated its offer to buy AirNet for $6.15 a share.