Judge allows DL to pay bills using disability-fund money
The Associated Press reported today that the judge presiding over Delta Air Lines’ (DL) bankruptcy case ruled that the carrier could use funds “earmarked for a disability and survivors trust to meet other financial obligations†as long as it continues to make payments to retirees and other disability-fund beneficiaries.
An attorney representing DL retirees argued that the airline used $83 million from the trust prior to filing for bankruptcy-court protection and wanted the judge to bar DL from taking any more money from the trust fund.
The judge agreed that DL’s use of money from the fund prior to filing for bankruptcy was questionable; however, the judge ruled that the retirees have no say in the way DL uses its money, as long as payments are not affected.
:angry: :down:
The Associated Press reported today that the judge presiding over Delta Air Lines’ (DL) bankruptcy case ruled that the carrier could use funds “earmarked for a disability and survivors trust to meet other financial obligations†as long as it continues to make payments to retirees and other disability-fund beneficiaries.
An attorney representing DL retirees argued that the airline used $83 million from the trust prior to filing for bankruptcy-court protection and wanted the judge to bar DL from taking any more money from the trust fund.
The judge agreed that DL’s use of money from the fund prior to filing for bankruptcy was questionable; however, the judge ruled that the retirees have no say in the way DL uses its money, as long as payments are not affected.
:angry: :down:
