Bankruptcy judge says Delta doesn't have to pay retirees
U.S. Bankruptcy Judge Prudence Carter Beatty shot down arguments from attorneys for retired pilots and the Air Line Pilots Association, which said she should force Delta to make the pension payments or start proceedings to change or cancel its collective bargaining agreement with ALPA.
Delta didn't make the $160 million payment to its "qualified" pension plan due over the weekend, only paying $417,000 for work done by pilots since the airline filed for Chapter 11 last month. The company has been adamant that any claims originating for work done before it filed Chapter 11, such as that by retirees, must be prioritized by the bankruptcy court with all the other claims against Delta.
Lisa Treon
10/19/2005
Delta Air Lines Inc. will not be required to make a payment of about $160 million payment to a pension plan for pilots and can also skip about $7 million per month in direct payments to retirees.10/19/2005
U.S. Bankruptcy Judge Prudence Carter Beatty shot down arguments from attorneys for retired pilots and the Air Line Pilots Association, which said she should force Delta to make the pension payments or start proceedings to change or cancel its collective bargaining agreement with ALPA.
Delta didn't make the $160 million payment to its "qualified" pension plan due over the weekend, only paying $417,000 for work done by pilots since the airline filed for Chapter 11 last month. The company has been adamant that any claims originating for work done before it filed Chapter 11, such as that by retirees, must be prioritized by the bankruptcy court with all the other claims against Delta.