Aloha to pay US$5.5 million in pension settlement

US BANKRUPTCY judge Lloyd King approved a settlement claim from the collapsed Aloha Airlines currently in liquidation amounting to US$5.5 million for failure to protect employee pension plans.

According to court papers cited in a Bloomberg report, the settlement following the carrier's collapse and closure in March last year will resolve further claims by Pension Benefit Guaranty set up by Congress to protect pension programmes following bankruptcies and $4 million of the amount will go to the pension fund for International Association of Machinists.

Separately, Judge King agreed a $500,000 settlement to go to Saltchuk Resources Inc, which bought Aloha Air Cargo May last year for $10.5 million for adjusted accounts receivable, post-closing amounts and the division of Aloha's assets related to the cargo business.

Source: Schednet