Riley Investment Issues Statement Opossing Northwest Proposal for Mesaba Airlines (MAIR)
In an amended 13D filing on MAIR Holdings Inc. (Nasdaq: MAIR), 5.3% holder Riley Investment disclosed a recent press release they distributed which included a statement opposing Northwest Airlines' (OTC: NWACQ) proposal to acquire Mesaba Airlines, a subsidiary of MAIR.
Riley Investment said Northwest Airlines' offer to acquire Mesaba Airlines in exchange for the allowance of Mesaba $145 million claim against Northwest is grossly inadequate. The firm said they value the total value of the Mesaba estate to be in excess of $300 million (Mesaba's original claim amount plus +$100 million value of Mesaba’s SAAB business).The firm said they will purse all avenues to ensure that the transaction is not consummated. Some actions they have contemplated include: "filing objections to the creditors’ current motion requesting the termination of exclusivity period for filing a plan of reorganization, pursuing litigation against various parties to the transaction, offering our own competing plan of reorganization if exclusivity is terminated, or entering into discussion with MAIR Holdings or other regional carriers." The firm also said they have held talks with a number of others large shareholders who share their concerns and support their actions.