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.
Also: Schiaparelli Probe, Spirit Of Aviation, Bell 429, Commuter Craft, Master Pilot Award, Predator B, Space Debris A new study released by the Mercatus Center at George Mason Uni>[...]
Santa Moncia City Council Candidates Sound Of On FAA Battle Recently, the Santa Monica Lookout sent a series of questions to candidates for City Council, one of which dealt with th>[...]
Dead reckoning, as applied to flying, is the navigation of an airplane solely by means of computations based on airspeed, course, heading, wind direction, and speed, groundspeed, a>[...]
“The GIV and G450 ushered in a business aviation renaissance that has led to increased safety, greater reliability, better technology and improved performance. It’s fit>[...]
New Form Makes Subscribing, Unsubscribing Even Easier While we're very proud of our newly-redesigned website, we know that some folks really enjoy the convenience of having their A>[...]