US Airways begins issue of 1.3 million shares to unsecured creditors

By Carlise Newman

Chicago, Sept. 9 - US Airways Group Inc. will begin issuing 1.3 million shares of common stock to its unsecured creditors in accordance with the company's reorganization plan.

The distribution is the first to be made to the company's unsecured creditors following the airline's emergence from Chapter 11 on March 31.

The distribution follows the vesting on July 31 of 50% of the stock allocated to employees under the company's reorganization plan.

Related to that distribution, the company completed a private placement of 5 million shares of common stock with Aviation Acquisition LLC, OCM Principal Opportunities Fund II LP and Goldman, Sachs & Co.; these shares were withheld by the company to pay federal, state and local taxes due on the value of the shares vesting. The placement closed on Aug. 28 at a purchase price of $7.34 per share, consistent with the valuation paid by the Retirement Systems of Alabama when it made its equity investment in the company in the spring.

The Arlington, Va.-based airline said in a news release it continues to explore options for listing its new stock on a national exchange.

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