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Hayman Advisors to nominate one of its own to ExpressJet's board
By Lisa Kerner
Charlotte, N.C, Feb. 20 - ExpressJet Holdings, Inc. investor Hayman Advisors LP, unhappy with the company's response to the issues it raised in January, plans to nominate two individuals for election as directors at ExpressJet's 2008 annual meeting on May 22.
The nominees are Hayman Advisors president Andrew N. Jent and William Loftus, managing director of the Loftus Group LLC, according to a schedule 13D filing with the Securities and Exchange Commission.
In January Hayman suggested ExpressJet sell all non-core assets and engage an investment bank to run a mergers and acquisition process.
Hayman representatives met with ExpressJet chief executive officer James B. Ream and chief financial officer Frederick S. Cromer on Feb. 11 to discuss the company's business, its relationship with Continental Airlines and developments in the airline industry.
The investor concluded that ExpressJet could use independent shareholder representatives on its board who can:
• Provide shareholders' perspective on the company's strategic direction;
• Challenge the board and management to reconsider corporate initiatives and policies that may not serve the best interests of the company and its shareholders; and
• Bring focus to the maximization of value for the benefit of shareholders.
Hayman has a 6.8% ownership interest in the Houston-based regional airline.
In a Jan. 22 letter to ExpressJet, Hayman said the launch of the company's "Branded Flying" strategy was the reason ExpressJet's equity value significantly declined.
According to Hayman, since the strategy's inception in early 2007, ExpressJet's unrestricted cash balances have been depleted by more than $50 million, cash flow fell to a negative $8.4 million and capital expenditures have tripled.
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