Printer Friendly

NAVISTAR FILES PROXY/PROSPECTUS WITH SEC; SHAREOWNERS TO VOTE TO APPROVE RETIREE HEALTH CARE SETTLEMENT AT SPECIAL MEETING

 CHICAGO, April 23 /PRNewswire/ -- Navistar International Corp. (NYSE: NAV) today filed a registration statement on Form S-4, including a proxy and prospectus, with the Securities and Exchange Commission (SEC).
 Once the SEC has reviewed the filing, Navistar plans to use the proxy and prospectus to seek the shareowner approvals necessary to begin implementing the new retiree health care and life insurance program announced in December. The company tentatively plans to hold a special meeting of shareowners toward the end of June.
 Navistar's shareowners will be asked to consider and vote on two proposals.
 The first proposal seeks approval of the settlement agreement between Navistar and a class comprising past and present employees, retirees and the unions representing its employees. The settlement agreement reduces Navistar's liability for retiree health care and life insurance benefits from approximately $2.6 billion to $1.0 billion, and requires retirees to share in the cost of their medical benefits through premiums, deductibles and co-payments. Under the terms of the settlement agreement, Navistar will establish two trusts to pay retiree medical costs and provide a vehicle for future funding. The settlement agreement requires shareowner approval because it provides for the issuance of new shares of stock and certain amendments to Navistar's corporate charter.
 To meet its funding commitments under the settlement agreement, the company expects to issue a substantial number of shares in the future. These commitments include the issuance of approximately 255 million shares to one of the trusts, and the eventual sale of additional shares of stock to pre-fund up to $500 million of the other trust.
 The company also is seeking shareowner approval of a 1-for-10 reverse stock
split. Shareowners will be issued one share of common stock for every ten shares currently outstanding. The reverse split will not affect shareowners' proportionate interests in Navistar.
 "The reverse split is necessary to provide a manageable number of shares of common stock, and to sustain investor interest in the company by producing a price level for the common stock that is consistent with market expectations for a company of our size," said James C. Cotting, chairman and chief executive officer.
 The company currently is awaiting approval of the settlement agreement from the U.S. District Court in Dayton, Ohio. Navistar is hoping to secure the necessary court, regulatory and shareowner approvals and begin implementing the new retiree health care and life insurance plan this summer.
 -0- 4/23/93
 /CONTACT: Deborah Spak of Navistar, 312-836-3232/
 (NAV)


CO: Navistar International Corp. ST: Illinois IN: AUT SU:

PS -- NY023 -- 9920 04/23/93 09:30 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 23, 1993
Words:429
Previous Article:MACANDREWS & FORBES EXTENDS TENDER OFFER FOR MARVEL SHARES
Next Article:/C O R R E C T I O N -- FITCH FINANCIAL WIRE/
Topics:


Related Articles
NAVISTAR SEEKS DECLARATION OF ITS RIGHT TO CHANGE RETIREE MEDICAL BENEFITS
NAVISTAR REPORTS THIRD QUARTER 1992 FINANCIAL RESULTS
NAVISTAR REPORTS FIRST QUARTER 1993 FINANCIAL RESULTS
NAVISTAR BOARD SUSPENDS DIVIDEND ON SERIES G PREFERRED STOCK
NAVISTAR REPORTS SECOND QUARTER FINANCIAL RESULTS
NAVISTAR SHAREOWNERS APPROVE HEALTH CARE SETTLEMENT AGREEMENT AND REVERSE STOCK SPLIT
THREE NEW DIRECTORS ELECTED TO NAVISTAR'S BOARD
NAVISTAR REPORTS THIRD QUARTER FINANCIAL RESULTS; ADOPTS ACCOUNTING STANDARDS FOR POSTRETIREMENT BENEFITS AND ACCOUNTING FOR INCOME TAXES
JACK LASKOWSKI ELECTED TO NAVISTAR'S BOARD OF DIRECTORS
Navistar Registers 19.9 Million Shares of Common Stock to be Sold by Supplemental Trust

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters