Kaiser Group Moves Towards Being an Operating Company

September 6, 2011

The $500,000 offer made by Kaiser Group to acquire Alabama Aircraft Industries, Inc. was approved by the court late last week. According to Kaiser, they plan to continue the operations of AAII. AAII had struggled in recent years and was not going to be able to meet its pension requirements owed to the United Auto Workers.

Up until this recent announcement, Kaiser primarily held investments for its own account which included a roughly 20% stake in Bally Total Fitness, a $10 million investment in the Paulson Gold Fund as well as other fund investments and a substantial cash position. It has been rumored that Bally is in negotiations to sell to the holding company for Gold’s Gym. This could bring Kaiser a good return and provide with plenty of cash to revive the struggling AAII.

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