December 31, 1987 |
Western Union Corp. said Wednesday that the final piece to its complex restructuring plan has been approved by debt holders, rescuing the company from the brink of bankruptcy proceedings. By Wednesday morning, the required two-thirds of the company's debt holders agreed to exchange their debentures for stock in a restructured company, a spokesman said. The new company will be formed by the merger of Western Union and its chief subsidiary, Western Union Telegraph Co.
March 13, 1986 |
Western Union Corp., which last turned a profit in 1982 and last year reduced its work force by more than a fifth, announced a major reorganization Wednesday aimed at slashing debt costs and improving liquidity. The comprehensive restructuring will require completing negotiations for repayment of $321 million in bank debt and swapping existing debt issues for new notes and common stock.
May 18, 1988 |
Hughes Aircraft announced Tuesday that it has closed a deal to buy four communications satellites from Western Union. El Segundo-based Hughes is purchasing three satellites already in orbit and a fourth on the ground that is scheduled to be launched next year. The deal, first announced in February, does not include Western Union's ground stations, which will be sold separately.
February 4, 1988 |
Hughes Aircraft agreed Wednesday to buy Western Union's communications satellite system, a move that would more than double the number of non-military communications satellites owned by Hughes. The price was not disclosed. However, Al Casazza, an analyst with Moody's Investment Service in New York, estimated that Hughes agreed to pay between $100 million and $200 million. According to investment analysts, Western Union has been trying to sell its troubled satellite system for several years.
April 9, 1985 |
A federal judge Monday ordered Western Union to turn over documents on the company's finances to two unions and said that employees will be temporarily free of wage concessions agreed to last year should a higher court stay his order. U.S. District Judge Herbert Stern ruled after finding that an agreement that the Upper Saddle River, N.J.-based communications company signed last year bound the company to giving the workers a say in Western Union's management.
February 18, 1987
The proposal to exchange new senior preferred shares and convertible preferred shares for the company's publicly held debt and some of its private debt was filed with the Securities and Exchange Commission. The swap is part of a previously announced restructuring plan in which Pacific Asset Holdings L. P. and MBC Holdings Inc. will invest $250 million in cash in Western Union.
August 1, 1986
Western Union in 1981 acquired about a 50% share in Airfone Inc., which operates an air-to-ground telephone system used in commercial aircraft. Under the sales agreement, GTE will acquire the stake for about $39 million. Western Union said it decided to sell because "our strategic plan for returning Western Union to profitability requires that we concentrate our efforts on our core telecommunications and information businesses." GTE said it also is buying the Airfone stock held by A.F.
July 23, 1985
Financially ailing Western Union Corp., which has not paid a dividend on its preferred or common stock in three quarters, reported net losses of $9.7 million for the second quarter and $25 million for the first half of 1985. The figures compare to a $5.3-million net gain in the second quarter of 1984 and profit of $19.4 million in the first half of last year. Western Union reported a net loss of $58.4 million for all of 1984.
March 7, 1985
Western Union Corp. said it lost $62.2 million in the fourth quarter, producing a 1984 loss of $58.4 million. It was the second consecutive annual loss for Western Union, which posted a $59-million deficit in 1983, largely because of a $110-million write-off of old equipment. In the latest quarter, Western Union's loss came on revenue of $289.1 million. A year earlier, the company lost $125.8 million on revenue of $269.4 million because of the equipment write-off. Full-year revenue rose to $1.
July 4, 1990 |
American Telephone & Telegraph Co. said Tuesday that it would buy some of the remaining assets of Western Union Corp., the troubled communications company with which it has been intertwined for more than a century. AT&T, trying to build up its non-telephone businesses, said it would pay $180 million for Western Union's electronic mail and Telex businesses, which accounted for 40% of its revenue last year.