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| Pension talks to delay exit from CCRA | | Published by: jane 2009-01-09 |
| | "Air Canada probably won't emerge from bankruptcy protection until mid- to late January, people familiar with the matter said yesterday, because management and the embattled airline's unions can't reach an accord on the future funding of pension plans.
The insolvent airline is at odds with unions and the Office of the Superintendent of Financial Institutions over how Air Canada plans to pay down its $1.5 billion pension deficit.
The sides have agreed to the carrier's proposal to spread payments over 10 years, but unions are also demanding that Air Canada use proceeds from the sale of any asset, such as its baggage-handling division, as well as some of its net income in coming years to accelerate the payment schedule.
That's a problem because neither Cerberus Capital Management LP nor Hong Kong-based businessman Victor Li would likely want to invest in a reorganized airline that has such a large debt on its books after emerging from bankruptcy protection. Cerberus and Li, the son of billionaire Li Ka-Shing, have both agreed to swap at least $700 million for a controlling stake in Air Canada." The Star
http://makeashorterlink.com/?E21842B46
This is not good - hopefully this can get resolved to everybodies satisfaction.
Simple solution is to put the unions into trustee ship and let the judge decide what is fair and right for all parties in this mess.
 How much does getting a small tattoo on your hip/stomach hurt?
 Do anyone else have an itchy anus? ?
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