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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 04.20.15

Airborne 04.21.15

Airborne 04.22.15

Airborne 04.23.15

Airborne 04.24.15

Airborne Hi-Def On YouTube

Airborne 04.20.15

Airborne 04.21.15

Airborne 04.22.15

Airborne 04.23.15

Airborne 04.24.15

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

Airborne 04.23.15: Able Flight, Diesel Archer, RutanRC!

Also: United Bars Security Expert, Airborne Advisors, NTSB Video, Avidyne, Cessna, Airport Access Tempest Plus Marketing Group has announced support for Able Flight as a Platinum L>[...]

Amazing Amphib! Lakeland 2015 Sponsor Progressive Aerodyne Goes EVERYWHERE

Progressive Aerodyne Does it All -- Land, Sea and Sky! Explore 'no limits' living in the newly FAA certified Searey Elite Amphibious Light Sport Airplane. This distinctive aircraft>[...]

Airborne 04.22.15: ANN Covers Sun 'n Fun!, Superior's Diesel, Sling 4

Also: Avidyne/Sun Flyer, Aspen Lowers Pricing, Glasair Diesel, Wipaire, Amphibious Air Ambulance, Proud Bird, GE90 Printed Parts People cast a wary eye to the sky Monday, as the fi>[...]

Aspen Avionics, True Innovators, Present SnF2015 Special Event Coverage!

SnF2015 Sponsor: Always-Innovative Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products in>[...]

Airborne 04.23.15: Able Flight, Diesel Archer, RutanRC!

Also: United Bars Security Expert, Airborne Advisors, NTSB Video, Avidyne, Cessna, Airport Access Tempest Plus Marketing Group has announced support for Able Flight as a Platinum L>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC