PBGC Considers UAL-CO Merger Implications

By Darren Shannon

Lawyers at the U.S. government backed Pension Benefit Guaranty Fund are looking at how United Airlines’ proposed merger with Continental Airlines could affect up to $500 million potentially owed by the Chicago-based carrier.

Under an agreement brokered during United’s Chapter 11 restructuring in 2005, the tax-payer-backed PBGC assumed responsibility for four defined benefit pensions ...

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