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SETTLEMENT OF SERIES C
CLAIM
NEW NWA SHARES INTO 401K PLAN
Q&A
1. How will the shares
of new NWA common stock in settlement of the Series C claim be
distributed?
All holders of Series C
Stock on 8/1/03, the Put Date, will receive shares of the new NWA
common stock in settlement of the Series C claim. If the Series C
shares were held in the 401(k) Plan on 8/1/03, the new NWA common
stock will be allocated to the individual’s 401(k) Plan account.
If the shares were held “in-kind” as a stock certificate on
8/1/03, the shares will be allocated to an account set up in their
name at Computershare, the stock distribution agent.
2. What if I
retired/terminated and no longer have a 401(k) Plan account?
If you held the shares
in the 401(k) Plan on 8/1/03, your 401(k) Plan account will be
reopened and the new NWA common stock will be allocated to that
account.
3. How will the
allocation of shares of new NWA common stock be determined?
Upon agreement with the
IAM and IBT trustees’ for the Series C Stock, the new NWA common
stock will be allocated to each individual holder based on their
number of Series C shares held on 8/1/03 divided by the total
number of Series C shares held on that date.
For example: Employee A held 150 shares of Series C Stock on
8/1/03 and there were 4,803,232 total shares held. There were
6,143,786 shares of new NWA common stock to be issued on May 31,
2007, for the settlement of the Series C claim. Employee A would
receive .000031228 (150/4,803,232) x 6,143,786 = 191.85 shares of
new NWA common stock.
4. Will the entire
allocation of shares in settlement of the Series C claim be made
on May 31, 2007?
No, as in nearly all
bankruptcy cases, the new stock issued to satisfy unsecured claims
is subject to a holdback of a portion of the claim. It is expected
that approximately 83% of the claim settlement will be allocated
on May 31, 2007, with periodic additional allocations thereafter.
5. When will the shares
of new NWA Common Stock be deposited into my 401(k) account?
The shares of new NWA Common Stock will be deposited into your
401(k) account at the close of business on Friday, June 1, 2007.
You will be able to view the shares in your account on Saturday,
June 2nd.
6. How can I verify that the shares were deposited into my
account?
On Saturday, June 2,
2007, you will be able to verify the number of shares deposited
into your account by logging into the 401(k) Plan Web site
(nwa401k.csplans.com) or by calling the audio line
(1-800-NWA-SAVE) and reviewing your account balance either by
investment fund or by source (type of account). The shares will be
deposited into the “New NWA Stock Fund” under the “Employee Stock
Plan” source.
7. Why were the new NWA
shares put into my 401(k) Plan account rather than given to me as
a stock certificate?
The claim that was
approved by the bankruptcy court was filed on behalf of the
holders of NWA Series C Stock. The Series C Stock was originally
contributed into the Employee Stock Plan and then later merged
into the NWA 401(k) Plan. To maintain the tax deferred status, the
new NWA stock will be allocated to the 401(k) Plan account.
8. Will the shares be
taxable when they are deposited into my 401(k) Plan account?
No, you do not pay taxes on the shares of new NWA Common Stock
until you sell the shares and withdraw the proceeds of the sale as
an in-service withdrawal, or until you take distribution of the
shares “in-kind” as a stock certificate after you terminate or
retire. You can continue to defer taxes if you roll over the
in-service withdrawal or distribution to an IRA or another
employer’s qualified retirement plan.
9. What happened to the shares of NWA Series C Stock that were in
my account on May 31st when NWA emerged from bankruptcy?
As required by NWA’s
plan of reorganization, all shares of NWA Series C Stock held on
May 31, 2007, were cancelled and their market value became zero.
10. Can I withdraw the
shares of new NWA Common Stock and receive a stock certificate?
You may not withdraw shares “in-kind” and receive a stock
certificate unless you have terminated employment or retired and
are requesting a distribution of your 401(k) account balance. This
401(k) Plan rule is not a new rule for the new NWA Common Stock.
This rule has been in effect for the entire time that NWA stock
has been in the Plan.
11. Can I sell the shares of new NWA Common Stock that are in my
401(k) Plan account?
Yes, you can request to
sell your shares of new NWA Common Stock at any time by accessing
the Plan Web site (nwa401k.csplans.com) or calling the audio line
(1-800-NWA-SAVE).
12. How do I sell the
shares in my 401(k) Plan account?
You can sell your shares of new NWA Common Stock through the Plan
Web site (nwa401k.csplans.com) or audio line (1-800-NWA-SAVE). To
process a sale through the Plan Web site, you will need a Personal
Identification Number (PIN). After logging into the Web site,
select Manage Investments then Fund Transfer located in the “My
Account” section and follow the instructions on the screen.
To
process a stock sale through the audio line, enter your employee
number or social security number and PIN and then follow the
prompts for processing a “spot transfer”, or press zero at the
main menu to speak with a participant service representative. If
you do not remember your PIN, call the audio line and enter your
employee number or social security number. You will then be
prompted to enter your PIN (two times). Hold on the line and you
will automatically be connected with a participant service
representative who can process your stock sale. Participant
service representatives are available Monday through Friday from
7:00 a.m. Central Time to 7:00 p.m. Central Time.
Fund transfers that
include a stock sale have a cutoff time of 12:00 p.m. Central
Time. All NWA stock sale transactions completed before 12:00 p.m.
Central Time on any business day will generally go to market as a
block that business day and post to your account that day. Fund
transfers including NWA stock completed after 12:00 p.m. Central
Time will be processed the following business day.
13. Can I withdraw the
proceeds of the sale of new NWA Common Stock?
Yes, the proceeds of
the sale of new NWA Common Stock are available for an in-service
withdrawal or a termination distribution. You will need your
Personal Identification Number (PIN) to process a withdrawal or
distribution. There may be tax consequences of withdrawing the
proceeds from the sale of your shares. See question #15 below.
14. How do I get a copy
of my Personal Identification Number (PIN)?
You can request a PIN
reminder on the Plan Web site (nwa401k.csplans.com) by selecting
“Forgot Your PIN?” on the login page. You can also request a PIN
reminder by calling the audio line (1-800-NWA-SAVE). After
entering your employee number or social security number, you will
be prompted to enter your PIN (two times). Hold on the line and
you will automatically be connected with a participant service
representative who can process your request. The PIN reminder will
be mailed to your home address.
15. What are the tax
consequences of withdrawing the proceeds from the sale of the new
NWA Common Stock?
If
you do not roll over your withdrawal or distribution to an IRA or
another employer’s tax qualified retirement plan, the payment will
be subject to income taxes and possible early withdrawal
penalties. Unless you roll over your withdrawal or distribution,
20% mandatory federal income tax will be withheld from your check.
Additional information is available in a comprehensive Special Tax
Notice located in RADAR or in the “Forms” section of the Plan Web
site.
16. Can I take a loan against the shares?
You may not borrow any portion of your account that is invested in
the new NWA Common Stock. However, the value of the shares is used
to determine the amount that may be available for a loan from your
non-NWA stock funds.
17. Where can I find the price of the new NWA Common Stock?
The new NWA Common Stock will be traded on the New York Stock
Exchange under the ticker symbol “NWA.” |
