July 15, 2013
/PRNewswire/ -- Navistar International Corporation (NYSE: NAV) today announced amendments to settlement agreements the company has in place with each of Icahn Partners ("Icahn") and MHR Fund Management LLC ("MHR"), as well as changes to the company's Stockholder Rights Plan (the "Rights Plan").
As part of the agreements, each of Icahn and MHR will have the opportunity to designate two nominees for election to the Board of Directors at the company's Annual Meeting of Shareholders in
. In addition, Icahn and MHR each has agreed that it will not run a proxy contest at the 2014 Annual Meeting and will support the Board's nominees, as well as certain other provisions. The Board has also approved an amendment to the company's Rights Plan that extends its expiration date from
August 31, 2013
June 18, 2015
and allows for an increase in beneficial ownership of common stock from 15 percent to 19.99 percent without triggering the Rights pursuant to the Rights Plan.
To allow for the additional director designated by the amended settlement agreements,
John C. (Jack) Pope
has determined to retire from the Board effective immediately. Pope's retirement leaves nine members on Navistar's Board until the company's Annual Meeting of Shareholders in
, at which point the company plans to nominate ten directors.
"On behalf of the Board, I would like to thank
for his contributions and service to Navistar during his time as a director," said
, Navistar Board of Directors non-executive chairman.
"We view the updated agreements with Icahn Partners and MHR, as well as the amendment to the Rights Plan, as positive steps as we continue to execute our turnaround plan and drive the company to restored profitability," said
, Navistar president and chief executive officer.
Details about the Rights Plan and the amended agreements with Icahn and MHR will be contained in a Form 8-K to be filed by the company with the U.S. Securities and Exchange Commission.