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: UK CAA, E-Fest 2015, Citizens In Space, Gulfstream G500, Dassault Falcon Jet, CFM LEAP-1A, Tuskegee's Milton Crenchaw ANN Airborne Link: /index.cfm?do=video.playVideo&vid>[...]
Aero-News Quote of the Day "Thales pioneered fly-by-wire technology almost 40 years ago, and we believe that Cessna’s confidence in us as we embark on this exciting next step>[...]
Inner Marker A marker beacon used with an ILS (CAT II) precision approach located between the middle marker and the end of the ILS runway, transmitting a radiation pattern keyed at>[...]
Aero Linx: Mercy Airlift It is the Mission of Mercy Airlift to provide humanitarian aid on a nondiscriminatory and impartial basis to the victims of natural and man made disasters >[...]
Will Share Data Among 10 Airport Network In Sweden Swedish Airport Operator Swedavia has selected Lockheed Martin to deliver a new generation of multi-airport operational systems t>[...]