Mesa Air Group Gains Reprieve

Mesa Air Group Inc. won a preliminary injunction in the Federal Court in Atlanta enjoining Delta Air Lines from terminating Freedom Air's ERJ-145 contract. Freedom Airlines currently operates 34 50-seat ERJ-145 and 7 76-seat CRJ-900 aircraft for Delta Connection. Commenting on today's court ruling, Mesa Air Group Chair and CEO, Jonathan Ornstein said, "We are pleased with the court's ruling. We wish to reaffirm our commitment to provide the very best service to Delta Air Lines, our passengers and our people. We are hopeful this issue can be fully resolved soon." Related Story
But the company also received a a notice of default May 22 from U.S. Bank National Association saying Mesa is in default under the terms of its indenture dated June 16, 2003 relating to the company’s Senior Convertible Notes due 2023, for failure to deliver certain notices and related materials to US Bank and holders of the notes. It must honor the debt within 60 days – by July 21 – and Mesa said it will be able to do so. To date, note holders for approximately $23.2 million of approximately $30.1 million in notes currently outstanding, have agreed to forego the exercise of the notes on June 16. Related Story