This is from a political website-
"Any proviso in that ruling that would reinstate the pension at the current levels should the economy improve (fat chance til Shrub's out of office) and business travelers return to the air enmasse?"
No, that can not happen. The distress ternimation of the pilot's pension plan is part of US Airways Group, Inc.'s chapter 11 Plan which is set for confirmation on March 18. Eleven days after entry of the Confirmation Order all of the debtor's obligations to the pilots (except as providecd for in the Plan) are discharged. The way they push things in the Region 4 U.S. Trustee's Office, US Airways Group, Inc. will get a Final Decree closing out the case whithin a year -- which is very much faster than in many other parts of the country.
The Pilots can appeal to the U.S. District court, but Judge Mitchell's findings of fact underlying his ruling can only be reversed for "clear error"; an impossibly high standard in these circumstances. Even if the Pilots were to appeal, they'd have to post a bond to stop US Airways Group from cutting off the pensions after the Plan's effective date, which is 11 days after confirmation. The amount of the bond would be staggering, and I would guess that ALPA would not going to have that kind of money available.
Despite what may have seemed like a close thing, from all I could tell, it wasn't. I try quite a few cases before Judge Mitchell and I know that reads the pleadings, exhibits, and memoranda very carefully, and typically does quite a bit of research on his own before any hearing like this. The fact that he had scheduled the Plan for confirmation only three weeks after this hearing tells me that he was reasonably convinced the debtor was going to prove his case on the distress termination anyway. In fact, the Assistant U.S. Attorney who represented the PBGC told me on Wednesday that he felt termination was in the cards after the first day.
One thing I do find strange is that as of Friday morning the Court hadn't even finished with the debtor's witnesses. The courthouse security and the court reporter had been told to be there on Sunday if necessary to finish the hearing, but ALPA's case and the five pilots who had signed-up to address the Court pro se were done in a day and half. It tells me that ALPA didn't have much in the way of testimony or evidence, but was trying to prove their case through cross-examination of the debtor's witnesses. Since under the Bankruptcy Rules ALPA (and any other objecting party) had the burden of proof, this was not the ideal tactic.
"Any proviso in that ruling that would reinstate the pension at the current levels should the economy improve (fat chance til Shrub's out of office) and business travelers return to the air enmasse?"
No, that can not happen. The distress ternimation of the pilot's pension plan is part of US Airways Group, Inc.'s chapter 11 Plan which is set for confirmation on March 18. Eleven days after entry of the Confirmation Order all of the debtor's obligations to the pilots (except as providecd for in the Plan) are discharged. The way they push things in the Region 4 U.S. Trustee's Office, US Airways Group, Inc. will get a Final Decree closing out the case whithin a year -- which is very much faster than in many other parts of the country.
The Pilots can appeal to the U.S. District court, but Judge Mitchell's findings of fact underlying his ruling can only be reversed for "clear error"; an impossibly high standard in these circumstances. Even if the Pilots were to appeal, they'd have to post a bond to stop US Airways Group from cutting off the pensions after the Plan's effective date, which is 11 days after confirmation. The amount of the bond would be staggering, and I would guess that ALPA would not going to have that kind of money available.
Despite what may have seemed like a close thing, from all I could tell, it wasn't. I try quite a few cases before Judge Mitchell and I know that reads the pleadings, exhibits, and memoranda very carefully, and typically does quite a bit of research on his own before any hearing like this. The fact that he had scheduled the Plan for confirmation only three weeks after this hearing tells me that he was reasonably convinced the debtor was going to prove his case on the distress termination anyway. In fact, the Assistant U.S. Attorney who represented the PBGC told me on Wednesday that he felt termination was in the cards after the first day.
One thing I do find strange is that as of Friday morning the Court hadn't even finished with the debtor's witnesses. The courthouse security and the court reporter had been told to be there on Sunday if necessary to finish the hearing, but ALPA's case and the five pilots who had signed-up to address the Court pro se were done in a day and half. It tells me that ALPA didn't have much in the way of testimony or evidence, but was trying to prove their case through cross-examination of the debtor's witnesses. Since under the Bankruptcy Rules ALPA (and any other objecting party) had the burden of proof, this was not the ideal tactic.
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