Thursday, February 02, 2012

Obama's Pension Agency Director pressures American Airlines from using bankruptcy to shed its pension plans

The federal government signaled Tuesday that it was ready to fight to prevent American Airlines from using bankruptcy to shed its pension plans.

While American has not said it intends to force the government to take over its pension plans, Joshua Gotbaum, director of the Pension Benefit Guaranty Corporation, said he was hoping to get out in front of any such move by the airline. The agency is already operating with a $23 billion deficit and has said it would bear an additional $9 billion loss if American terminated all four of its employees’ plans, which cover 130,000 people.

Last month, American’s parent company, AMR Corporation, said that it was contributing just $6.5 million to the pension plans, far short of the $97 million contribution that it would need to make if it were outside bankruptcy.

In a move to recover that shortfall, Mr. Gotbaum said Tuesday that the agency had put liens on $91 million of American’s assets, beginning the process of foreclosure. Most of the assets are in Latin America. They include aircraft, ticketing offices and real estate and are not part of the bankruptcy.

4 comments:

Third Generation Chicago Native said...

Just in Trump will endorse Newt?

I told you some good old boys will be throwing money at Newt, here is one with a lot of it, ready to throw it at Newt.

Third Generation Chicago Native said...

Let's start making predictions which good old boys are next!

SP Biloxi said...

Media got it wrong, Third. Trump endorse Willard not the lizard man Newtie. I find it interesting that Trump endorse Willard, the man that he criticized and didn't think he would win. Certainly it is interesting timing for Trump since his show Apprentice will air this month. Willard offered him something in return for his endorsement.

Third Generation Chicago Native said...

Ya the media guessed and were sure, but they are usually right. Yep when the announcement was made a lot of media had their tail between their legs.
I also believed it becaue Trump is a good old boy.