Delta, PBGC Agree To Toss Pilots Pension Plan

Law360, New York (December 4, 2006, 12:00 AM EST) -- Delta Air Lines and the Pension Benefit Guaranty Corp. have signed off on a deal to jettison the airline’s pension plans under an agreement that would award the government’s pension insurer an unsecured claim of $2.2 billion in Delta’s bankruptcy.

The settlement marks a big step forward for Delta as the airline struggles to move out of bankruptcy protection. The bankruptcy court previously determined that Delta could not reorganize or emerge from Chapter 11 unless the pilot plan was terminated.

Delta’s unsecured creditors gave their full...
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