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 06.27.16

Airborne 06.28.16

Airborne 06.29.16

Airborne 06.30.16

Airborne 07.01.16

Airborne Hi-Def On YouTube

Airborne 06.27.16

Airborne 06.28.16

Airborne 06.29.16

Airborne 06.30.16

Airborne 07.01.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

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 06.30.16: 7000th Citation, C Series Order, John Glenn Honored

Also: Solid Rocket Motor Test, OSH16 Coverage!, Ducted Fan, Welsh Farewell, Blue Origin, Boeing-Farnborough, European TBM 930 Cessna has delivered the first fractional Cessna Citat>[...]

Airborne 06.29.16: SWA Delays Max, McConnell OKs B29-Doc, AAL Trashes Cameras

Also: Flytenow V Supreme Ct, Electric eSpyder, F-35 Adir, IL AirShow, NJ AvTax, FAI Young Artist, Unregistered Airplane To survive in the airline business it is sometimes necessary>[...]

Airborne 06.30.16: 7000th Citation, C Series Order, John Glenn Honored

Also: Solid Rocket Motor Test, OSH16 Coverage!, Ducted Fan, Welsh Farewell, Blue Origin, Boeing-Farnborough, European TBM 930 Cessna has delivered the first fractional Cessna Citat>[...]

ANN's Daily Aero-Linx (07.01.16)

FAA Repair Station Locator Need to find a certified repair station near you? This FAA resource allows you to search by state and type of repair needed to provide you with your opti>[...]

ANN's Daily Aero-Term (07.01.16): Terminal VFR Radar Service

A national program instituted to extend the terminal radar services provided instrument flight rules (IFR) aircraft to visual flight rules (VFR) aircraft.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC