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speedpuppy

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Oct 3, 2002
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http://quote.bloomberg.com/apps/news?pid=c...ews&tkr=UAIR:US

US Airways Can't Use New Pension Calculation for Plan (Update2)
December 30, 2003 10:24 EST -- A federal bankruptcy judge ordered US Airways Group Inc., the largest U.S. airline east of the Mississippi, to calculate the value of its pilot pension plan in a way that may deprive some creditors of about $1.3 billion.

US Airways Can't Use New Pension Calculation for Plan (Update1)
December 30, 2003 09:56 EST -- A federal bankruptcy judge ordered US Airways Group Inc., the largest U.S. airline east of the Mississippi, to calculate the value of its pilot pension plan in a way that may deprive some creditors of about $1.3 billion.

US Airways Barred by Bankruptcy Judge From Cutting Pension Cost
December 30, 2003 08:49 EST -- US Airways Group Inc., the largest U.S. airline east of the Mississippi, was barred by a bankruptcy judge from calculating the value of its pilots' pension plan to reduce the fund's shortfall by $1.3 billion.
 
Speaking of Pensions.....Look what CO did


The carrier contributed $372 million to the Continental pension plan in 2003, significantly exceeding the company's minimum contribution requirements for the year.



And what are we doing..................Great job Dave & Co.
 
I think that it just has to do with the amount of assets handed over to the PBGC due to the termination of the old retirement plan. I believe that this was an argument that the company lost with the PBGC months ago, and that they went back to the "judge" that they THOUGHT they had in their pocket to get him to make a ruling in their favor. Looks like even the "hired help" isn't seeing things Dave's way anymore! :unsure:
 
Statement of US Airways
Tuesday December 30, 12:43 pm ET


ARLINGTON, Va., Dec. 30 /PRNewswire-FirstCall/ -- US Airways Inc. (Nasdaq: UAIR - News), today issued the following statement:

"We respectfully disagree with the Court's decision, as we believe we used a prudent calculation methodology for the unfunded liability of the pilot pension plan. Over the next week, we will be analyzing the decision and evaluating our appeal alternatives.

"It is important to note that this ruling does not alter the fact that the PBGC and the Bankruptcy Court had previously determined that the pilot pension plan met the rigorous standards for a distress termination. Furthermore, the company has no financial exposure related to this decision, because if this ruling stands, the result will be that the PBGC will receive payment in the form of stock awarded to the unsecured creditors under the plan of reorganization."




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Source: US Airways Inc.
 
OK any guesses what the Company will lose next in Court?

First it was the Airbus issue..................LOSER
Now the Pension Issue.........................LOSER

Whats next DAVE.

Stop wasting money on Appeals and right this ship! ! ! ! ! ! ! !
 
A short history for those that haven't followed the pilots' pension saga:

U said pension plan was $2.2 billion underfunded & sought distress termination.

BK judge agreed.

PBGC filed claim with BK court as unsecured creditor for amount of underfunding (they routinely do this)

Reorganization plan sits aside 8% (I think) of new stock to satisfy unsecured creditor claims.

U emerges from BK.

U, citing "new improved assumptions" says underfunding only $900 million and PBGC not entitled to as much of the "set aside" stock as it claimed.

PBGC disagrees with "new improved assumptions", hauls U in front of BK judge.

Judge rules, as above.
 
Hope777, there are financial (tax) advantages for doing what CO did. I'm not enough of an accountant to explain them, maybe someone else can.

But you're right, CO didn't have to do it.
 
USFlyer said:
Statement of US Airways
Tuesday December 30, 12:43 pm ET


ARLINGTON, Va., Dec. 30 /PRNewswire-FirstCall/ -- US Airways Inc. (Nasdaq: UAIR - News), today issued the following statement:

"We respectfully disagree with the Court's decision, as we believe we used a prudent calculation methodology for the unfunded liability of the pilot pension plan. Over the next week, we will be analyzing the decision and evaluating our appeal alternatives.

"It is important to note that this ruling does not alter the fact that the PBGC and the Bankruptcy Court had previously determined that the pilot pension plan met the rigorous standards for a distress termination. Furthermore, the company has no financial exposure related to this decision, because if this ruling stands, the result will be that the PBGC will receive payment in the form of stock awarded to the unsecured creditors under the plan of reorganization."




--------------------------------------------------------------------------------
Source: US Airways Inc.
This management sure spends a lot of time and money appealing cases.
 
BoeingBoy said:
A short history for those that haven't followed the pilots' pension saga:

U said pension plan was $2.2 billion underfunded & sought distress termination.

BK judge agreed.

PBGC filed claim with BK court as unsecured creditor for amount of underfunding (they routinely do this)

Reorganization plan sits aside 8% (I think) of new stock to satisfy unsecured creditor claims.

U emerges from BK.

U, citing "new improved assumptions" says underfunding only $900 million and PBGC not entitled to as much of the "set aside" stock as it claimed.

PBGC disagrees with "new improved assumptions", hauls U in front of BK judge.

Judge rules, as above.
Now that sounds like the real story! I guess that was under Judge Michell.

Well, he sure knows now in retrospect that he was snowed by U on the alledged "viable" restructuring plan, (which has turned into the "transformation plan". Whatever that means?
 
PitBull,

I assume it was Judge Mitchell - haven't seen a name in any of the reports.

ringmaruf,

"I'm asking this as an honest question. As it appears that this won't affect US Airways' finances in either event, just the distribution of the stock to the unsecured creditors, why does US even care?"

I've asked myself that same question and don't honestly have an answer.

Jim
 
Sometimes inflated egos behave badly at the expense of everyone. It doesn't have to make sense ... it simply has to be yellow, flow in a continous stream and extend just a bit further than the other guys' ... sad, isn't it?
 
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