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 Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne On ANN

ADR 02.27.17

Airborne 02.27.17

Airborne 02.28.17

Airborne 02.22.17

Airborne 02.23.17

Airborne 02.24.17

Airborne-HD On YouTube

ADR 02.27.17

Airborne 02.27.17

Airborne 02.28.17

Airborne 02.22.17

Airborne 02.23.17

Airborne 02.24.17

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

Counting Down! ANN's Infamous April 1st Edition's Just Around The Corner!

Get Your Wacky Ideas In NOW! ANN E-I-C Note: Folks... we gotta warn you... our Annual April 1st Editions are LEGENDARY -- and this WILL be our best April 1st Edition yet. Based on >[...]

Airborne 02.24.17: RV-10 Suit Dismissed, 2016 GA Sales, Red Tail Legacy

Also: Falcon 9 Landing, TFR Busts, Denton Airshow, QF-16, Treasure Coast, 'Fly Safe' Campaign, Juno Mission When the news first came out, in 2015, that Van's Aircraft was sued for >[...]

Sun 'N Fun To Host Massive Gathering Of P-51 Mustangs

Expected To Be The Largest Assembly Of P-51s In A Decade Or More It is being billed as possibly the largest gathering of P-51 Mustangs in a decade or more ... on Wednesday, April 5>[...]

DJI Hints At A New Drone, Reveals Details Early

Industry WAS Speculating What The Drone Giant May Be Bringing To Market Next Generating buzz is good marketing, and DJI was doing so with a Tweet announcing new products for the Mo>[...]

Klyde Morris (02.27.17)

Klyde Is Amazed By All The Ways NASA Info Gets Interpreted FMI: www.klydemorris.com>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC