there is writing about u.s. air "buying" certain assets from mesa air group in the legal papers.
go and read this for yourself as this is public information.
not only does u.s. air want to "buy" certain assets from mesa air group, they also are taking an "equity stake".
so, only time will tell if the old shares die or if they become worth a quarter or something like that.
this is why the old shares still trade at all. if they knew now that the old shares shall be worth nothing then you wouldn't have pink sheet short sellers on here, that are short at 1 and 2 cents, tryng to "talk" this thing lower.
so, if it even goes to 5 cents people like airwolf fear getting a depressing margin call. by the tone of his posts he sold quite a few at a penny or two. he seems in a panic at times. it is certain that people like him/her will deny being short here.
you all need to know that virtually anyone can short sell a pink sheet stock. go and do it if it makes you happy!
my guess is that we're going to a dime here next. ...and VERY-VERY quickly. my guess is by friday.
"1.126 Interests. Any equity security of any Debtor within the meaning of Section 101(16) of the Bankruptcy Code, including, without limitation, all issued, unissued, authorized or outstanding shares of stock or other equity interests (including common and preferred), together with any warrants, options,convertible securities, liquidating preferred securities or contractual rights to purchase or acquire such equity interests at any time and all rights arising with respect thereto."
The second paragraph of the POR reads in part:
"The holders of Interests will receive no distribution on account of such Interests, and the Interests in Mesa Air Group will be cancelled."
In short, the common shares will be wiped out.
And the POR also says:
"4.7.2 Treatment. Upon the Effective Date, all existing Interests in Mesa Air Group shall be deemed extinguished and the holders of such Interests shall not receive or retain any property on account of such Interests under the Plan. Reorganized Mesa Air Group shall be vested, directly or indirectly, with the Interests in the Reorganized Debtor Subsidiaries and the Liquidating Debtors on the Effective Date."
Current shareholders will, thus, get nothing under the Amended POR.
hotformama said "so, if it even goes to 5 cents people like airwolf fear getting a depressing margin call. by the tone of his posts he sold quite a few at a penny or two. he seems in a panic at times. it is certain that people like him/her will deny being short here."
honestly, i didn't know you could still short the stock. had i known i could, i would have. i don't have a position in the stock. i wish i was short the stock.
my last post was "100% yes." how much "tone" did you get out of that post?