Outside Investors To Control Us Airways

[700UW]

Outside investors to control US Airways
Tuesday June 28, 8:53 am ET

WASHINGTON (Reuters) - Outside investors will control 49 percent of the airline that will result from the planned merger of bankrupt US Airways (OTC BB:UAIRQ.OB - News) with America West Airlines (AWA - News), according to a regulatory filing on Tuesday.

The ownership by outside investors, including several hedge funds, is larger than was announced when the merger deal was first struck last month, and reflects $149 million in new equity from Boston-based Wellington Management Co. LLP.

America West will hold 39 percent of the new entity, down from a previously announced 45 percent, while US Airways shareholders will own 12 percent, down from 14 percent, according to the proxy statement with the U.S. Securities and Exchange Commission on the proposed merger.

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[jack mama]

US Airways shareholders???? What does that mean?
I thought the shares were cancelled? Is it the part the secured creditors are getting or what?

 

[BoeingBoy]

I don't know why these reporters can't get it right. From the proxie:

"Assuming that US Airways Group receives $500 million in equity financing at the effective time of the merger, we expect that former America West Holdings stockholders will hold approximately 39% of new US Airways Group common stock outstanding immediately following the merger. Certain former US Airways Group creditors and new equity investors as a group will hold approximately 12% and 49%, respectively, of new US Airways Group common stock outstanding immediately following the merger"

Proxie Statement

Jim

 

[usfliboi]

whats very revealing here? Those who think one is buying the other is def incorrect. Neither own a majority