Law360 (July 29, 2008, 12:00 AM EDT) -- A federal judge has allowed the trustee overseeing Aloha Airlines Inc.'s Chapter 7 bankruptcy to sever the company's pension plan with one of its unions so that the U.S. Pension Benefit Guaranty Corporation can take over the union's benefits, which the airline can no longer afford.
Judge Lloyd King of the U.S. Bankruptcy Court for the District of Hawaii gave U.S. Trustee Dane Field permission Friday to terminate the plan, effective July 28.
The trustee had been financing the shortfall of Aloha's contribution to the plan,...
Judge Lets Aloha Trustee End TWU Pension Plan
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