The PBGC is appealing an earlier bankruptcy court ruling saying Aloha Airlines met conditions to terminate its four defined benefit plans, according to court documents. Judge Robert Faris of the U.S. Bankruptcy Court in Honolulu ruled on Dec. 5 that Aloha could transfer its pension obligations to the PBGC and exit from Chapter 11 bankruptcy this month. The PBGC filed the appeal Friday.
Aloha officials filed a motion with the bankruptcy court later Friday, saying the PBGC's appeal "imperils" its ability to restructure. "Given the debtors' dire need for liquidity, the delay occasioned with an appeal will result in the near certain death of the debtors," according to a court document.
Aloha, which filed for bankruptcy protection nearly a year ago, requested that the court expedite the appeal process. A hearing will be held on that request Tuesday.
Aloha has $281 million in total retirement assets, according to the Money Market Directory.
PBGC spokesman Jeffrey Speicher declined to comment.
