Pacific Northwest ...
ACE Aviation Holding’s Air Canada will renegotiate a $6.1 billion order for Boeing jets after an arbitrator settled a dispute the carrier said prevented it from proceeding with the deal.
“With the successful resolution of this matter, we can now re-engage Boeing to conclude an agreement on the acquisition of new wide-body aircraft and move forward with plans for the airline’s future,” Air Canada Chief Executive Montie Brewer said Tuesday.
Arbitrator Martin Teplitsky’s decision upheld an amendment to a contract between Air Canada and the Air Canada Pilots’ Association, which represents 3,100 pilots. ACE canceled the order after pilots rejected the June 9 amendment, which added Boeing 777s and 787s to the list of planes they fly.
Most Read Stories
- Costco is testing a new burger in Seattle, and it might remind you of Shake Shack
- Seattle No. 1 in home-price growth again; starter homes require half of income
- UW study finds Seattle’s minimum wage is costing jobs
- Elizabeth Warren: ‘The next step is single-payer’ health care
- Zillow vs. McMansion Hell: Seattle company not backing off fight with blog despite PR fiasco
Army praises combat program
Boeing’s performance on the $125 billion Future Combat Systems, the Pentagon’s second most expensive weapons program, is “very acceptable,” said U.S. Army Secretary Francis Harvey.
The system of faster, lighter battle vehicles linked by high-speed, digital communications, unmanned drones and combat radios had been cited for “significant development and contracting delays” when the House of Representatives passed its version of the fiscal 2006 defense budget in June.
“They are on cost and on schedule,” Harvey said last week. “They have a very sound program plan for technology development.”
The Army is negotiating with Boeing to tie more of the program’s profit to performance, he said.
$82 million to be issued in debt
Cell Therapeutics said Tuesday it has agreed to raise $82 million in a new convertible-debt offering and will retire $38.4 million in old debt by swapping it for stock.
The Seattle cancer-drug developer would not comment until the offering closes, probably Friday, said a spokeswoman.
The old debt, due in 2008 and 2010, is part of Cell Therapeutics’ total convertible debt of $190.1 million.
The debt holders agreed to convert the notes into 13.2 million shares of common stock, an effective rate of $2.90 per share, far below the $10 and $13 per share conversion prices on the original debt.
The new notes pay 6.75 percent interest and have a conversion price of $2.63 a share. They mature in 2010.
The company’s stock closed at $2.49 Tuesday, up 9 cents or 3.8 percent.
Compiled from Bloomberg News and Seattle Times staff