Alabama Retirement System, Montgomery, negotiated an agreement with US Airways Group Inc. to take seven seats on the US Airways board. The $25 billion system, which has a deal to acquire a 36% stake in the carrier, originally requested five seats. "It's a question of having control and a majority of the voting rights," said David Bronner, Alabama CEO. The new agreement also calls for the system to receive $75 million annually in preferred stock in exchange for offering an additional $75 million if needed so the airline can obtain a $900 million federal loan guarantee. The loan has been conditionally approved.
Separately, Mr. Bronner said the system is working with the PBGC to find a way to make the $5 billion US Airways pension plan viable. Its unfunded liabilities currently stand at around $3.6 billion, Mr. Bronner said.
