XJT Seeking Share Issuance to Meet Debt

Following in Mesa’s lead, ExpressJet is trying to renegotiate its debt. It is also negotiating with Continental for a new capacity purchase agreement even as it assists SkyWest and Continental in the due diligence required of SkyWest’s proposal to acquire the company.
ExpressJet is calling a special meeting of stockholders to approve a potential issuance of additional shares of ExpressJet common stock and an amendment to ExpressJet's certificate of incorporation increasing the authorized number of shares of common stock in conjunction with the company's continuing effort to secure new terms from certain holders of its 4.25 percent Convertible Notes due 2023. It has already filed a preliminary proxy statement with the Securities and Exchange Commission.
The troubled carrier also said while it continues to explore a full range of strategic and operational alternatives in response to the unsolicited merger proposal from SkyWest, Inc., it is negotiating with Continental for a new capacity purchase agreement. It is also helping SkyWest and Continental perform the due diligence required of the proposed acquisition. However, it also said that conditions set forth in SkyWest’s proposal have yet to be satisfied. SkyWest proposed to acquire the ExpressJet for $3.50 per share in cash as part of a capacity purchase agreement with Continental which also required an amendment to the ExpressJet pilot contract. Related Story www.aviationtoday.com/ran/categories/commercial/21350.html
ExpressJet said that its Special Committee, composed of independent outside members of ExpressJet's Board of Directors, along with the Special Committee's financial advisors from Goldman, Sachs & Co. and its legal advisors from Abrams & Laster LLP, have devoted considerable time and effort to assist SkyWest and Continental, as well as their financial and legal advisors, in performing their due diligence and to address the other conditions to the SkyWest merger proposal.