Source = e-Travel Blackboard: Z.Z
Northwest has agreed to sell its 5.7 million share stake in the company back to MAIR Holdings for $6.25 per share, which is valued at around $35 million. The agreement also releases Northwest’s warrant to buy 4.1 million shares of MAIR stock.
On the other hand, Northwest will acquire Mesaba Airlines in exchange for a $145 million unsecured claim in Northwest’s bankruptcy case. Mesaba will therefore exit its own bankruptcy as a subsidiary of Northwest.
“We believe that the transition of Mesaba to Northwest is a good outcome for all parties in Mesaba’s bankruptcy,” said Paul Foley, MAIR Holdings’ President and Chief Executive Officer.
“It provides potential value for our shareholders and allows us to fully pursue other opportunities, both through Big Sky and in new areas,” he adds.
The deal is still pending approval from courts overseeing both bankruptcy cases. However, the two companies expect the deal to close before April 15.