Good news for Pinnacle Airlines

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I saw this filing on the SEC website after close on Friday, but not in any news release:

 

http://www.sec.gov/Archives/edgar/data/1166291/000116629109000031/form8-k.htm

 

This removes two big uncertainties:

 

1- The Auction Rate Securities story is now settled with cash in hand at roughly what they carried them at on their balance sheet (about $3 million less) and we retain any potential upside between this settlement value and an eventual return to par for 3 years.

 

2- This liquidity issue fear should now disappear with enough cash left after the repayment of $78 million in par amount of their convertible and loan to Citigroup to pay all obligations remaining (rest of convert, pilot bonus, Colgan relocation, some capital leases) other than EDC loans which are secured by their Q400's and CRJ900's.

 

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