Hayman Advisors continues to invest in ExpressJet

By Lisa Kerner

Charlotte, N.C., Jan. 25 - Investors led by Hayman Advisors, LP bought an additional 935,269 shares of ExpressJet Holdings, Inc. stock, increasing their ownership in the company to 6.40% from 6.25%.

The shares were purchased between Nov. 26 and Jan. 22 priced from $2.69 to $2.84, according to a schedule 13D filing with the Securities and Exchange Commission.

The investors beneficially own some 3.5 million shares of the company's outstanding stock.

In a Jan. 22 SEC filing, Hayman, in a letter to company chief executive officer James B. Ream, said the then-current price of $2.67 per share did not reflect ExpressJet's true value.

Hayman also took management to task for launching its "Branded Flying" strategy, which the investor believes is the reason ExpressJet's equity value has "declined so significantly."

According to Hayman, since the strategy's inception in early 2007, ExpressJet's unrestricted cash balances have been depleted by over $50 million, cash flow fell to a negative $8.4 million and capital expenditures have tripled.

Hayman made several suggestions to ExpressJet to improve its position, including selling all non-core assets and engaging an investment bank to run a "real" mergers and acquisition process.

Houston-based ExpressJet operates as a regional airline under the name Continental Express.

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