Alaska Communications (NASDAQ: ALSK) has announced that its board of directors has approved the adoption of a tax benefits preservation plan (or “the plan”) in the form of a Section 382 Rights Agreement designed to protect and preserve the long-term value of certain tax assets primarily associated with net operating loss carryforwards, the company said.
Alaska Communications intends to submit the tax benefits preservation plan, which is similar to tax benefits preservation plans adopted by many other public companies with significant tax assets, for stockholder ratification at its 2018 Annual Meeting of Stockholders.
As of December 31, 2016, Alaska Communications had approximately USD 67.5 million of (pre-tax) federal net operating loss carryforwards or NOLs that could potentially be utilized in certain circumstances to offset Alaska Communications´ future taxable income and reduce its federal income tax liability.
Morgan, Lewis & Bockius LLP is serving as Alaska Communications´ legal advisor.
Alaska Communications is the provider of advanced broadband and managed IT services for businesses and consumers in Alaska. The company operates a highly reliable, advanced statewide data network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous US For more information, visit www.alaskacommunications.com or www.alsk.com.