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CPA discusses sale of Delta stock
The Commonwealth Ports Authority is contemplating the sale of its shares in Delta Air Lines, in light of an investment policy in the works.
CPA board members discussed last week a report on the 9060 shares in Delta Air Lines that, according to CPA comptroller Skye Aldan, was priced at $46 a share.
CPA counsel Robert Torres explained to the board that the shares were originally debt owed them by Northwest Airlines, but when Northwest filed for bankruptcy—in its reorganization plan—the airline took the debt and converted it into common shares.
“The money now on the market has appreciated under Delta,” Torres said.
With the shares, CPA is sitting on around $400,000 right now, from stocks that had little value to begin with. In 2010, the value of the stock was at $11.51, and in 2013, the closing price was at $18.41, according to board members at the meeting.
The board 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 be presented to the CPA finance committee for review and comments.
