Fri, Dec 28, 2012
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.
“Lisa’s contagious passion for reaching the dream of building or restoring an aircraft rubs off on everyone around her... The excitement is easy to enjoy, and has prope>[...]
The Quadcopter Revolution Is In Full Swing... Here's Info On How To Join In! While at eFest 2015, ANN CEO and Editor-In-Chief, Jim Campbell, talks with a company known as Horizon H>[...]
Excuse The Pun... But Klyde Is Clearly Having A Blast -- Pilot Style FMI: www.klydemorris.com>[...]
Also: 'No Drone Zone', Aviation v Media, Women's Air Race Classic, Houston Spaceport, Navy's New A/C Launch System, GA Fly Safe, FAA InFO Trig Avionics tells us they are unveiling >[...]
Legend Cub and Sporty's Pilot Shop Partner on Sales and Sweepstakes The American Legend Aircraft Company has announced a twofold partnership with Sporty's Pilot Shop. First, Sporty>[...]