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.
Innovative Aerodynamic Technologies Produce Game-Changing Results At the NBAA 2013 convention, ANN CEO and Editor-In-Chief, Jim Campbell had a chance to talk with Tamarack Aerospac>[...]
Seawings The largest flying boat reference web site and home of the flying boat -- in detail -- on the web; specializes in providing information for the scale modeler in the form o>[...]
Pressure altitude corrected for nonstandard temperature. Density altitude is used in computing the performance of an aircraft and its engines.>[...]
“This upgrade is an important step in laying the foundation for the NextGen system, which provides controllers a much more precise view of the airspace, gives pilots much mor>[...]
Get A Customized ANN News Portal For YOUR Website! As we promised, the ever-so-busy software geeks at ANN have been working overtime on a number of cool new tools and toys... and t>[...]