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 03.02.15

Airborne 03.03.15

Airborne 03.04.15

Airborne 03.05.15

Airborne 02.27.15

Airborne Hi-Def On YouTube

Airborne 03.02.15

Airborne 03.03.15

Airborne 03.04.15

Airborne 03.05.15

Airborne 02.27.15

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 03.05.15: AW609 Milestone, EASA Cert: S-76D, UAVs Coming To Oshkosh!

Also: SAFE, PC-12 Theft Thwarted, MyGoFlight Heli Solutions, Updated: Bell 412EPI, Big Bell 'Relentless' Deal The AgustaWestland AW609 TiltRotor program has achieved a key mileston>[...]

Harrison Ford Injured In Forced Landing

Actor, Pilot, And Aviation Advocate Went Down On A California Golf Course Harrison Ford sustained moderate injuries Thursday when the the airplane he was piloting ... which appears>[...]

AeroSports Update: The Only Ice Runway In The Lower 48 Is Open

Winter Weather Can Sometimes Put A Crimp On Recreational Flying Unless You Have Snow Skis, Tundra Tires, Or An Ice Runway The question is; what does Alton Bay, NH have in common wi>[...]

Delta Jet Slides Off Runway At LaGuardia Airport

No Injuries Among The 127 Passengers Aboard The MD-88 A Delta Airlines MD-88 with 127 passengers and five crew on board arriving from Atlanta skidded off the runway at LaGuardia Ai>[...]

ANN's Daily Aero-Linx (03.06.15)

Flying Stuart Little's Airplane Got a little one at home? Try your tyke out on the free online airplane game, "Flying Stuart Little's Aeroplane.">[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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