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CPA board authorizes sale of Delta shares
The Commonwealth Ports Authority board of directors during a meeting at the Port of Saipan last Wednesday. (Frauleine Villanueva-Dizon)
The board of the directors of the Commonwealth Ports Authority has authorized the sale of its shares in Delta Airlines Inc.
During the board meeting last Wednesday, the CPA board passed Resolution No. 16-03, which is a resolution regarding sale authorization.
According to director Kimberly King-Hinds, who introduced the motion, a resolution was needed for the sale of the shares, as was discussed in their prior board meetings.
The resolution states that the board “owns” the Delta shares and “has the authority to sell, assign, and transfer securities.”
It added that the board “desires to sell its shares” and is therefore authorizing the sale of the shares.
Acting board chair Thomas P. Villagomez, secretary Roman T. Tudela, and directors Pete P. Reyes, Barrie C. Toves, and Hinds all voted to pass the resolution.
Back in October of last year, CPA has been contemplating the sale of the said shares in light of an investment policy in the works.
During that time, the over 9,000 shares of CPA was priced at $46 each, according to CPA comptroller Skye Aldan.
The shares were originally debt owed them by Northwest Airlines. When Northwest filed for bankruptcy, the airline took the debt and converted it into common shares in its reorganization plan.
With the shares, CPA is sitting on around $400,000 presently as the stocks which had then little value has appreciated. The board discussed that in 2010, the value of the stock was at $11.51, and in 2013, the closing price was at $18.41.
The board previously discussed recovering the $400,000 and taking care of the $165,000 in debt, and keeping the net balance with Delta or toward an investment or project.
On the investment option, Aldan said they would follow investment policy statement, which CPA has drafted and would present to the CPA finance committee for review and comments.
