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Mesaba creditors committee announces resolution to request to modify company's exclusive periods
By Jennifer Lanning Drey
Portland, Ore., Jan. 9 - Mesaba Aviation, Inc.'s official committee of unsecured creditors announced it has reached an agreement in principal with Northwest Airlines and Mesaba's parent company, Mair Holdings Inc., resolving the committee's request to modify the company's exclusive periods, according to a source familiar with the situation.
The terms of the agreement were not publicly announced, the source said.
The creditors committee announced the agreement at the U.S. Bankruptcy Court for the Southern District of New York just prior to a hearing during which a bankruptcy judge was scheduled to listen to the committee's request on the exclusivity modification.
That hearing was adjourned until Jan. 17, and the parties expect Mesaba to file a consensual plan by that date, according to the source.
Northwest announced last week a stock purchase and reorganization agreement under which Northwest would acquire 100% of the new common stock in reorganized Mesaba, according to a previously filed motion.
The unsecured creditors committee had previously asked the court to modify Mesaba's exclusive periods in order to allow the committee to file its own plan because the transaction was not progressing in a timely manner.
As previously reported, under the acquisition, all 10,000 existing Mesaba shares, which are currently owned by Mair, would be cancelled.
In exchange, Mesaba would have a $145 million general unsecured claim against Northwest.
Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005. Its Chapter 11 case number is 05-39258.
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