Dow Jones Business News
US Air Exploring Liquidity Options on Stock Distribution
Tuesday July 15, 7:06 pm ET
Dow Jones Newswires
ARLINGTON, Va. -- US Airways Group Inc. is exploring liquidity options for the shares that will be distributed to creditors and employees as part of its reorganization plan.
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In a prepared statement Tuesday, the company said it is exploring options in addition to listing on a national stock exchange for the stock.
US Airways, which emerged from bankruptcy March 31, delayed distribution of some of the shares earmarked for its employees to July 31, citing a very limited market.
Alternatives to a listing are being considered because of currently weak market conditions and the fact that some of the shares are slated to be issued shortly, the company said.
In bankruptcy, US Airways canceled its previous common stock.
Under the restructuring plan, the pilots'' union was to receive 19% of the reorganized company''s shares, and other employees would get 11%. The airline''s largest investor, the Retirement System of Alabama, is receiving a 36.6% stake.
-John Seward; Dow Jones Newswires; 201-938-5400
US Air Exploring Liquidity Options on Stock Distribution
Tuesday July 15, 7:06 pm ET
Dow Jones Newswires
ARLINGTON, Va. -- US Airways Group Inc. is exploring liquidity options for the shares that will be distributed to creditors and employees as part of its reorganization plan.
ADVERTISEMENT
In a prepared statement Tuesday, the company said it is exploring options in addition to listing on a national stock exchange for the stock.
US Airways, which emerged from bankruptcy March 31, delayed distribution of some of the shares earmarked for its employees to July 31, citing a very limited market.
Alternatives to a listing are being considered because of currently weak market conditions and the fact that some of the shares are slated to be issued shortly, the company said.
In bankruptcy, US Airways canceled its previous common stock.
Under the restructuring plan, the pilots'' union was to receive 19% of the reorganized company''s shares, and other employees would get 11%. The airline''s largest investor, the Retirement System of Alabama, is receiving a 36.6% stake.
-John Seward; Dow Jones Newswires; 201-938-5400
