US - Delta Air Lines has secured a further US$719m worth of pension benefits for retired pilots, bringing the total including claims already approved to an estimated $800m.
"Working with DP3 - the group representing most of Delta’s retired pilots before the bankruptcy court, [Delta] has secured the support of the Official Committee of Unsecured Creditors to allow an additional estimated $719m in unsecured, pre-petition claims for non-qualified pension benefits for its retired pilots," the air line said in a release yesterday.
Edward Bastian, Delta CFO, said the agreement meant retired pilots would be able to recover "a significant portion" of their unpaid benefits.
“This agreement represents another important milestone in what we believe is shaping up to be a very successful transformation of Delta, and we remain focused on proceeding with our plan to emerge from bankruptcy in the first half of 2007 as an independent, stand-alone company,” said Bastian.
Earlier this year, the various parties reached agreement on “pre-termination claims” totalling approximately $80m for the period between Delta’s chapter 11 filing in September of 2005 up to September 2, 2006.
Delta said retired pilots were expected to be awarded allowed claims on account of unpaid nonqualified pension benefits of approximately $800m - $9m of which would be administrative in nature, with the balance being general, unsecured, pre-petition claims.
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