Court to hear Hawker-PBGC plan on Jan. 17
The U.S. Bankruptcy Court will have a hearing on Jan. 17 to consider the takeover of two Hawker Beechcraft Corp. pension plans by the Pension Benefit Guaranty Corp.
In an agreement struck last month, Hawker would terminate the two plans.
In return for taking over the underfunded plans, PBGC will get a $419.5 million unsecured claim against the company.
The company plans to maintain its union pension plan.
Hawker intends to emerge from bankruptcy as Beechcraft Corp. early this year.
According to this report from Business Insurance, if PBGC takes over the two plans — with their 9,500 participants and $390 million in underfunded agency-guaranteed benefits — it would be government insurer’s biggest loss since 2009.
The Wall Street Journal previously reported that the PBGC will recover less than 7 cents on the dollar under Hawker’s proposed Chapter 11 plan.
Daniel McCoy covers aviation, manufacturing, automotive and Koch Industries.