Is Mesaba Airlines worth $145 million and $10 million dollars in operating money? Northwest Airlines thinks it's a fair offer and said that the company has offered to purchase the struggling feeder carrier for them, however the plan comes with some rules.
"An agreement has been negotiated by representatives of Northwest Airlines, Mesaba Airlines, and its unsecured creditor committee. There are no significant open issues requiring further negotiations," Northwest spokesman Bill Mellon.
Mesaba currently has until February to propose its own reorganization plan. But the deal with Northwest calls for Mesaba to file a reorganization plan by Jan. 15.
This allows for Northwest to expedite the process so that the people over at MAIR holdings, the parent company of Mesaba don't have much time to think about the deal. This basically gives Mesaba 2 weeks to come up with a plan to exit from bankrutpcy protection. It took United 5 years, it has taken Northwest nearly a year. Two weeks is a very short time to come up with a plan, even if one was already in the process.
Some shareholders are not happy either calling the $145 million claim "grossly inadequate" and said MAIR is overly influenced by Northwest, which owns 28 percent of the company.
So the drama with Mesaba's parent compay and Northwest continues. It will be interesting to see how this situation plays out between the two companies.
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