PRNewswire-FirstCall MILWAUKEE Nov. 21 :
At a special meeting today, shareholders of Midwest Express Holdings, Inc.
approved all four proposals the airline holding company presented.
The shareholder approval will allow the company to complete two financing
transactions it announced on September 30:
—The second step, in the amount of $10 million, in a sale of $25 million
in convertible senior secured notes.
—An issuance of common stock to certain investors.
The company expects to complete those transactions next week.
The shareholder action also included approval of an all-employee stock
option plan intended to recognize the contributions employees have made to
help reduce labor costs and improve productivity.
The company had asked its shareholders to approve the items as part of a
comprehensive plan to restore its operations to long-term financial
health. This past summer, the company successfully achieved a number of
major restructuring goals - including labor cost savings and productivity
improvements from its employee unions, identification of opportunities to
enhance productivity among non-represented employees, renegotiation of
aircraft finance agreements, and adjustment of the company`s fleet plan
and delivery schedules. Reaching closure on those efforts allowed the
company to move ahead to obtain new financing.
“The matters shareholders approved today are vital for several reasons,
but most particularly because they provide us with the financial resources
necessary to execute our business plan going forward,” explained Timothy
E. Hoeksema, chairman and chief executive officer. He pointed out that the
company`s unrestricted cash will total in excess of $75 million after it
completes transactions associated with the shareholder-approved items.
These transactions - which are subject to customary closing conditions -
are anticipated to close next week.
Midwest Airlines features nonstop jet service to major destinations
throughout the United States. Skyway Airlines, Inc.—its wholly owned
subsidiary—operates Midwest Connect, which offers connections to
Midwest Airlines as well as point-to-point service between select markets
on regional jet and turboprop aircraft. Together, the airlines offer
service to 50 cities. More information is available at
This document contains forward-looking statements that may state the
company`s or management`s intentions, hopes, beliefs, expectations or
predictions for the future. Words such as “expect,” “anticipate,”
“believe,” “estimate,” “goal,” “objective” or similar words are intended
to identify forward-looking statements. It is important to note that the
company`s actual results could differ materially from those projected
results due to factors that include but are not limited to uncertainties
related to general economic factors, industry conditions, scheduling
developments, government regulations, labor relations, aircraft
maintenance and refurbishment schedules, potential delays related to
acquired aircraft, fuel costs, competitive developments, interest rates,
terrorist attacks or fear of terrorist attacks.