STOCK MARKET WATCH - Wednesday, 1 February 2012

[DemReadingDU]

92. AMR will seek to end worker pensions

2/1/12 AMR will seek to end worker pensions
The Pension Benefit Guaranty Corp, which has responsibility for insuring certain benefits under private defined benefit pension plans, said on Tuesday it believes American Airlines will seek to terminate employee pensions in bankruptcy.

The agency said it filed a $92 million lien against American parent AMR Corp AAMRQ.PK for the balance of unpaid pension plan contributions. It added that the lien was applied to AMR assets outside the United States, mainly in Latin America.

American filed for Chapter 11 protection in late November, citing uncompetitive labor costs. The carrier declined to comment on the PBGC statement.

American's unions, meanwhile, were bracing for meetings with airline managers this week that may provide clarity on the cost savings the carrier hopes to win from labor.

"We believe that tomorrow they will outline the size of the cuts at American," said Jamie Horwitz, spokesman for the Transport Workers Union.

more...
http://uk.reuters.com/article/2012/01/31/us-amr-idUKTRE80U1LP20120131



So the PBGC won't be taking over the AMR pensions, for reduced amounts? Pensions eliminated entirely?