« Airline Bankruptcies: Higher Taxes for Good Firms | Main | Bush: Limit Asbestos Victims RIghts »

January 07, 2005

Judge Throws Out United Bankruptcy Deal

At least this judge found that an airline was abusing the bankruptcy court system. United and its pilots had cut a deal dumping the pilots pension costs onto the Pension Guaranty Corporation-- but only on the condition that the airline negotiate the end of pensions for other workers and unions at the company.

The judge found that the deal was "unduly tilting the bankruptcy process", which forces all sides back to the drawing board. The other unions are still fighting hard to preserve their pension rights, so this gives them more chance to fight.

Posted by Nathan at January 7, 2005 04:26 PM