Pension Agency To Cover Aircraft Co.'s $59M Shortfall

Law360, New York (July 29, 2011, 4:50 PM EDT) -- The Pension Benefit Guaranty Corp. on Friday announced that it would cover $59 million in unfunded pension obligations left behind by aircraft maintenance firm Alabama Aircraft Industries Inc., which is shopping itself in Delaware bankruptcy court.

The PBGC says it will pay the retirement benefits of more than 3,000 workers and retirees of Alabama Aircraft, which filed for Chapter 11 bankruptcy protection in February to deal with its pension shortfall. The company is headed for the auction block after failing to find financing.

“At PBGC we...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.