PBGC Won’t Back Down From Delta Fight

Law360, New York (June 8, 2006, 12:00 AM EDT) -- Refusing to take no for an answer, government-backed insurer the Pension Benefit Guaranty Corp. has decided to appeal the bankruptcy court’s approval of Delta Air Lines Inc.’s new pilots’ contracts, maintaining that the agreement violates federal pension law.

On Wednesday, the PBGC reiterated its opposition to the plan’s proposed pilot payouts, arguing in court papers that “all claims for such underfunding belong exclusively to the PBGC."

Last month, the court overrode objections lodged by the PBGC and greenlighted the agreement between Atlanta-based Delta and its pilots...
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