More Than $9 Million For Retirement Plans of Bankrupt Aloha Airlines Recovered
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Friday, June 19, 2009
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The
U.S. Department of Labor has entered into settlement agreements with
Aloha Airlines Inc., Bank of Hawaii and First Hawaiian Bank, which
agreed to pay $9,545,454 to the airline's three pension plans for
losses the plans suffered on investments in stock of the airline's
holding company. Both Aloha and its holding company are bankrupt. The
money will be paid to the Pension Benefit Guaranty Corp., the trustee
of the plans.
The Labor Department contended that Aloha and Bank
of Hawaii, as the plans' fiduciaries, breached their duties under the
Employee Retirement Income Security Act (ERISA). They allegedly caused
or permitted the plans to buy newly issued stock of the airline's
holding company Login to read more.
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