Creditors Want Role in NW, Mesaba Talks

While no deal has been announced by either Mesaba or Northwest, at least on major investor in MAIR Holdings, Mesaba’s parent company, is concerned the airline will not get “fair value” if acquired by Northwest. The two airlines announced last month they were negotiating. Riley Investment Partners told the Pioneer Press it wants independent shareholding interests represented in the negotiations and is calling for a majority shareholder approval of any deal. For its part, MAIR said it “will evaluate any development with an eye to its impact on all shareholders, our subdiaries, their employees and the communities they serve.” Riley, which owns 5.3 percent of MAIR, said other shareholders, including Lloyd Miller and Palmyra Capital Advisoros, which own 6.4 percent combined, share its concerns. It also said Northwest, with a 28 percent holding in MAIR, has a conflict of interest, adding that Mesaba’s $145 million unsecured bankruptcy claim “proposed by Northwest is grossly inadequate.” Finally, Riley indicated that if its concerns were not addressed it could intervene in the bankruptcy cases for both Northwest and Mesaba.