Posted at 5:27 p.m., Thursday, December 15, 2005
Judge rules Aloha Airlines can end bankruptcy
Associated Press
A federal judge today upheld Aloha Airlines' reorganization plans, rejecting an appeal by a federal agency that would have blocked its emergence from bankruptcy.U.S. District Judge Seabright said Aloha may abandon its obligations to its defined-benefit pension plans. The judge said from the bench that the airline could not survive as a business outside bankruptcy proceedings unless the pension plans are terminated.
Seabright's ruling turned down an appeal by the Pension Benefit Guaranty Corp., the federal agency that insures private pensions.
The agency will have to make payments to Aloha pensioners.
