Northwest To Fork Over $14M To PBGC

Law360, New York (January 25, 2007, 12:00 AM EST) -- Northwest Airlines has agreed to shell out $14 million to the Pension Benefit Guaranty Corp., seeking to end a dispute over the airline’s delinquent insurance premiums for its pilot retirement plan.

The government-backed insurer revealed the news on Wednesday, lifting the liens it had imposed against Northwest due to the late payments.

The PBGC was quick to emphasize, however, that the agreement does not release Northwest from its pension obligations altogether.

Northwest, which filed for bankruptcy in September 2005, is still responsible for nearly $5.7 billion...
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