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A federal bankruptcy judge has preserved pension benefits for hundreds of Hawker Beechcraft employees.
According to the International Association of Machinists and Aerospace workers, Judge Stuart Bernstein approved a pension benefit settlement for more than 3,000 members.
The union said it also negotiated a new pension plan while "guaranteeing the continuation of an existing 401(k) savings plan and maintaining pension benefits for retired IAM members."
But Hawker's effort to exit bankruptcy was put on hold Thursday after Bernstein refused to approve part of the company's restructuring plan.
Bloomberg reports the judge would approve most of the plan while rejecting a proposal for a Hawker unit that he said conflicted with bankruptcy laws. Bernstein said he wanted minor changes in the wording of the plan before granting final approval.
Hawker filed for bankruptcy in May, citing lower demand for private jets after the recession and reductions in U.S. defense spending. The company released a report Wednesday that it had fallen below a workforce tax incentive agreement with local and state officials.
Another hearing was set for April 9.