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Motion of the Council of Allegheny County directing Council's solicitor to file suit against the Allegheny County Airport Authority in order to determine the appropriate disposition of the proceeds from the sale of certain U.S. Airways stock by the Authority.
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WHEREAS, in July, 2003 the County and Airport Authority were awarded U.S. Airways stock with a then-current aggregate value of roughly $6 million (the “Stock”); and
WHEREAS, this stock represents a settlement of bankruptcy claims filed separately by the County and Airport Authority against U.S. Airways and presided over by a Federal Bankruptcy Court; and
WHEREAS, after the settlement was made and approved, the County and Airport Authority executed an escrow letter between them dated August 11, 2003 (hereafter the “Escrow Letter”, a copy of which is attached hereto) providing for the retention of the Stock in escrow pending the mutual agreement of the County and the Airport Authority regarding (a) appropriate disposition of the stock and (b) appropriate division of the proceeds of this disposition between the County and Authority; and
WHEREAS, the Escrow Letter provides, inter alia, that in the event the County and the Airport Authority are unable to agree as to an allocation of the Stock between them, “either party may petition the Court of Common Pleas of Allegheny County for a determination of the parties' respective rights” with respect thereto and “to effect distribution thereof”; and
WHEREAS, upon information and belief, the Authority converted and unilaterally sold, the Stock without the prior knowledge and consent of the County and without petitioning the Court of Common Pleas of Allegheny County; and
WHEREAS, upon information and belief, the stock had depreciated in value at the time of the sale such that the proceeds of the sale were $756,000; and
WHEREAS, upon information and belief, the County has not received any of the sale proceeds, which have been r...
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