Judge approves US Airways pension deal with federal agency

[JURIST] A federal bankruptcy judge on Friday approved a settlement agreement between US Airways [corporate website] and the Pension Benefit Guarantee Corporation [agency website] over nearly $2.7 billion in claims stemming from the airline's Chapter 11 bankruptcy. Under the approved deal, PBGC receives cash, guarantees and an ownership stake in the restructured airline to cover its claims after the airline terminated pensions [PBGC news release] for 51,000 employees in January. PBGC's claims were the last major hurdle to US Airways' emergency from bankruptcy following a merger with America West [JURIST report] expected to be completed this fall. AP has more.



 

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