Alabama Aircraft Moves To Terminate Pension Plan

Law360, New York (April 13, 2011, 8:10 PM EDT) -- Plagued by labor woes and running out of cash, Alabama Aircraft Industries Inc. asked a Delaware bankruptcy judge on Tuesday to approve the distress termination of its pension plan.

If obligated to make a scheduled contribution to the plan on April 15, the aircraft maintenance company will be forced to shut down, AAI said in a motion filed in the U.S. Bankruptcy Court for the District of Delaware.

The United Automobile Workers union has refused to voluntarily amend its collective bargaining agreement with AAI to terminate...
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