Wednesday, April 25, 2007

Schultze Asset Opposes MAIR HOLDINGS (MAIR) Acquisition Plans, Wants Big Sky Subsidiary Sold

In a 13D filing on MAIR HOLDINGS (Nasdaq: MAIR), Schultze Asset Management disclosed a 5.9% stake in the company and said they are disappointed that the Company may be planning to pursue acquisitions that may be outside of the airline industry using shareholders' cash. The firm believes the board's and Company's best course of action would be to distribute any and all cash remaining after the reorganization transaction to shareholders as soon as possible in a tax-efficient manner.

Separately, the firm believes that the Company should initiate efforts to sell its Big Sky subsidiary as soon as possible by retaining a nationally recognized investment bank to do so.
The firm believes that the shares are substantially undervalued based on the amount of cash that would be distributed to shareholders in the event the board implements its suggestions.
The firm said it may make proposals to the board, seek to change the composition of, or seek representation on, the board, all with the underlying purpose of increasing shareholder value. In addition, the Reporting Persons may acquire additional shares (i) for investment purposes, (ii) to change or influence the control of the Company, and/or (iii) with a view toward a possible acquisition of the Company.

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