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- Jul 11, 2003
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US Airways studies options to create liquidity
US Airways is exploring ways to create liquidity for shareholders as it
works to meet the standards to have new common stock listed on a national
exchange.
Arlington, Va.-based U.S. Airways, the nation''s seventh-largest airline,
says its board has authorized management to explore, in addition to listing
the shares, other possible alternatives that would provide liquidity for
shareholders. Montgomery-based Retirement Systems of Alabama has a majority
control of the carrier''s board of directors.
US Airways'' common stock was delisted from the New York Stock Exchange when
the company filed for Chapter 11 bankruptcy protection in August 2002. The
stock was canceled when the carrier successfully emerged from its
restructuring in late March.
Part of US Airways'' restructuring plan calls for it to issue common stock to
employees and unsecured creditors. But without stock to issue, the company
and its unions have delayed issuing some of the shares to employees until
July 31 and, as compensation for the delay, accelerated the issuance of
another group of shares.
Our employees and our unsecured creditors have played a major role in our
successful restructuring, says US Airways CEO David Siegel in a press
statement. The board has determined that if the company can provide
liquidity to shareholders in a way that works for both the shareholders and
the company, then the company should pursue that course of action in a
timely manner.
US Airways has said that it has no plan to issue new stock in the immediate
future, due to the volatility in the financial markets and the unstable
condition of the airline industry. The carrier says it also could sell
assets to raise cash and liquidity, or it could look for private investors.
Pittsburgh Business Times
S© 2003 American City Business Journals Inc.
US Airways is exploring ways to create liquidity for shareholders as it
works to meet the standards to have new common stock listed on a national
exchange.
Arlington, Va.-based U.S. Airways, the nation''s seventh-largest airline,
says its board has authorized management to explore, in addition to listing
the shares, other possible alternatives that would provide liquidity for
shareholders. Montgomery-based Retirement Systems of Alabama has a majority
control of the carrier''s board of directors.
US Airways'' common stock was delisted from the New York Stock Exchange when
the company filed for Chapter 11 bankruptcy protection in August 2002. The
stock was canceled when the carrier successfully emerged from its
restructuring in late March.
Part of US Airways'' restructuring plan calls for it to issue common stock to
employees and unsecured creditors. But without stock to issue, the company
and its unions have delayed issuing some of the shares to employees until
July 31 and, as compensation for the delay, accelerated the issuance of
another group of shares.
Our employees and our unsecured creditors have played a major role in our
successful restructuring, says US Airways CEO David Siegel in a press
statement. The board has determined that if the company can provide
liquidity to shareholders in a way that works for both the shareholders and
the company, then the company should pursue that course of action in a
timely manner.
US Airways has said that it has no plan to issue new stock in the immediate
future, due to the volatility in the financial markets and the unstable
condition of the airline industry. The carrier says it also could sell
assets to raise cash and liquidity, or it could look for private investors.
Pittsburgh Business Times
S© 2003 American City Business Journals Inc.
