Neil Abt for TT
Navistar International Corp. will extend a plan to protect the tax value of its net operating losses until Nov. 3.
The truck maker, whose tax benefits from past losses were about $1.7 billion on Oct. 31, created the plan in June to protect against an unintended change in control of the company under federal tax law. Such a change could allow some other company or individual to claim those benefits instead of Navistar.
“Navistar's board of directors has further reviewed and studied the status of the company’s net operating losses and other carry-forwards to determine the alignment of the plan with the best interests of the company,” nonexecutive Chairman James Keyes said in a statement.
The Internal Revenue Code states in Section 382 that a “change in control” happens if holders of more than 5% of its stock trade more than half of the company’s shares over a three-year period.