Hawker Beechcraft Dumping Two Underfunded Pension Plans | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne/NBAA2014 10.22.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.22.14 **
** Airborne/NBAA2014 10.21.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.21.14 **
** Airborne/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **

Fri, Dec 28, 2012

Hawker Beechcraft Dumping Two Underfunded Pension Plans

Programs Cover Non-Union Workers And Retirees

In a filing made just a few minutes before midnight last Friday, Hawker Beechcraft dumped pension plans covering nearly 9,500 non-union workers and retirees that were severely underfunded. The move came as part of an agreement with the federal government's Pension Benefit Guaranty Corp (PBGC) and the planemaker's machinists' union.

Under the terms of the agreement, the PBGC will assume responsibility for the two terminated pensions, while HBC, which will emerge from bankruptcy as Beechcraft Corporation, will keep the pension plan covering its 8,200 current and former union workers.

The Wall Street Journal reports that the two scrapped plans are short by hundreds of millions of dollars. In return for taking on the plans, which will pay a guaranteed benefit to a retired worker up to $56,000 per year, the PBGC will receive an unsecured claim against the company of $419.5 million. At the end of the bankruptcy proceedings, the government entity will recover about seven cents on the dollar, according to the report.

The hedge funds which are acquiring HBC, including Bain Capital's Sankaty Advisors, had originally demanded that the planemaker dump all three of its pension plans. They reportedly moved away from that position "in the spirit of compromise" and in an effort to avoid almost certain litigation.

The plan will be considered by Bankruptcy Judge Stuart M. Bernstein at a hearing currently scheduled for January 17th. Hawker Beechcraft expects to emerge from bankruptcy under its new structure early next year.

FMI: http://dm.epiq11.com/HBC/Project

Advertisement

More News

Game-Changing NBAA2014 Sponsor Mid-Continent Instruments and Avionics!

Innovation Brings Safe, Certified, Nanophosphate® Lithium Batteries To New Business Aircraft True Blue Power is the first company in the world to achieve FAA TSO and EASA ETSO >[...]

Embraer’s Legacy 500 Receives FAA Certification

EASA Certification Expected Later This Year The FAA handed over certification papers for Embraer's Legacy 500 executive jet during a ceremony at the National Business Aviation Asso>[...]

Airborne at NBAA--10.21.14: NBAA2014 Opens, Eclipse Update, FJ44 TBO Increase

Also: Shuster/Hart Address NBAA, Gogo Means Business, BBJ Maxes Out, Hartzell Pulls Its Weight The NBAA Opening General Session featured two well-known names from Washington. Repre>[...]

Airborne at NBAA-10.22.14: Legacy 500, Universal InSight, BendixKing AeroWave

Also: GE Honda, Sagem's Active SideStick, Syberjet Update, Techno Aerospace Knows How to Party The FAA handed over certification papers for Embraer's Legacy 500 executive jet durin>[...]

ANN's Daily Aero-Linx (10.23.14)

Experimental Balloon and Airship Association A loose congregation of aeronauts who have built, are flying or own any sort of Experimental, Ultralight or Homebuilt Lighter-Than-Air >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC