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Under the proposal, Catalytica Energy would complete a two-for-one stock split at the time shares were distributed to stockholders in the parent company.
The Loewen Group, the second-largest funeral home operator in North America, said that it had filed a plan to emerge from bankruptcy that would give ownership of the company to its creditors, along with cash and new debt securities, but would not leave anything to be distributed to stockholders.
The remainder is distributed to stockholders as dividends or held back as retained earnings.
Whatever's left will be distributed to stockholders, usually at pennies on the dollar.
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Now that the bankruptcy is finalized, most of the TWC shares will be distributed to Adelphia stockholders.
Dividends are usually set at a fixed annual rate that must be paid before dividends are distributed to the common stockholders.
That gives many companies an incentive to hoard cash or borrow rather than distribute profits to stockholders in cash.
What other company could dominate a day's news simply by saying it plans on distributing directly to stockholders perhaps a quarter of the profit it generates?
Policy makers, the company and consumer activists put their own spins on the information, but they agree on one thing: the audit shows that the parent company was able to take advantage of the billions it received from the utility and apply it to its other businesses as well as distribute it to stockholders.
Do not distribute to minors.
The shares will be distributed on June 1 to stockholders of record as of May 3. Agere wants to split so it can sell more parts to companies that may have been reluctant to award contracts to the unit of a rival.
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