PBGC Picks Up Delta's Pilots' Pensions

Law360, New York (January 8, 2007, 12:00 AM EST) -- In a move that will bring Delta Air Line Inc. a step closer to emerging from bankruptcy, the beleaguered airline confirmed Friday that the Pension Benefit Guaranty Corp. has become the trustee of its pilots’ pensions.

The PBGC will be responsible for approximately $920 million of Delta’s $3 billion in shortfall legacy for costs, the group said. Delta has about $1.7 billion to cover over $4.7 billion in benefits liabilities, it said.

The deal -- which saw the parties agree to jettison the pension plans in...
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