Summary
Allegheny Technologies Incorporated (ATI) filed an 8-K on July 22, 2016, to report a temporary suspension of trading under its employee benefit plans, commonly known as a "blackout period." This action is necessitated by the consolidation of several 401(k) plans into a new, unified plan called the ATI Retirement Plan. This consolidation is expected to impact participants in collective bargaining units. Investors should note that this is primarily an administrative action related to employee benefits and not a direct reflection of the company's operational or financial performance. The blackout period will prevent participants, including the company's directors and executive officers, from conducting transactions within their 401(k) accounts, including any holdings of ATI's common stock. This restriction is scheduled to begin on August 25, 2016, and is anticipated to conclude during the week of September 12, 2016. The company has provided contact information for interested parties seeking details about the blackout period dates.
Key Highlights
- 1ATI is implementing a temporary suspension of trading (blackout period) for its employee 401(k) plans starting August 25, 2016.
- 2The purpose of the blackout is to consolidate multiple 401(k) plans into a single defined contribution plan, the ATI Retirement Plan.
- 3Participants in collective bargaining units will be affected by this consolidation and temporary trading halt.
- 4The blackout period is expected to last until the week of September 12, 2016.
- 5During the blackout period, all account transactions within the affected 401(k) plans will be suspended.
- 6Company directors and executive officers are also prohibited from trading ATI common stock held within their 401(k) accounts during this period, as per Sarbanes-Oxley Act regulations.
- 7ATI has provided a contact point for inquiries regarding the blackout period dates.