Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

PBGC Says Northwest, Delta Must Make Pension Payments
(UK Internet traffic -Source? Link? Why would that make sense, jra2?)

Northwest, Delta Must Make Pension Payments
Thursday September 15, 2:29 pm ET
Northwest, Delta 'Required' to Make Pension Contributions in Bankruptcy, PBGC Official Says
http://biz.yahoo.com/ap/050915/airlines_pensions.html?.v=4

WASHINGTON (AP) -- The head of the federal agency that protects private-sector pensions Thursday said Delta Air Lines Inc. and Northwest Airlines Corp. are required to keep making pension contributions in bankruptcy.

The two airlines filed for bankruptcy Wednesday. Both owe their pensions plans billions of dollars. Delta said Wednesday it does not plan to make the next scheduled contribution to its pension fund. "Northwest and Delta continue to be responsible under the law for making their pension contributions," the executive director of the Pension Benefit Guaranty Corp., Bradley Belt, said in a statement.

"As long as companies remain in operation with ongoing pension plans, they have a legal obligation to meet their funding requirements," he said.

Both carriers have been seeking pension-law changes that would let them spread out the payments to their underfunded pensions. Earlier this year, United transferred its pension plan to the PBGC with a bankruptcy judge's permission.