Tuesday, December 26, 2006

Northwest Airlines Discloses Talks With MAIR Holdings (MAIR) Regarding Possible Mesaba Buyout

In an amended 13D filing after the close Friday on MAIR Holdings Inc. (Nasdaq: MAIR), 39.5% holder Northwest Airlines (OTC: NWACQ) confirmed that Northwest, MAIR's wholly owned subsidiary Mesaba Aviation, the committee of unsecured creditors of Mesaba and MAIR Holdings are in discussions with respect to entering into a potential acquisition by Northwest of all the equity interests in an entity resulting from a bankruptcy plan of reorganization of Mesaba (the principal consideration in such acquisition would consist of Mesaba having an allowed general unsecured claim in Northwest’s bankruptcy case in an amount equal to $145 million).

Northwest, Mesaba, the UCC and MAIR have not reached any definitive agreement with respect to the Potential Acquisition and there can be no assurances as to whether or when any such agreement will be reached.

Shares of MAIR Holdings surged last week after he President of Mesaba, John Spanjers, disclosed the Northwest talks in a letter to its 3,000 employees Wednesday.

Labels: , , ,


Post a Comment

<< Home