US govt probes Northwest over pension fund-NYT
Wed Mar 15, 2006 3:36 AM ET

NEW YORK, March 15 (Reuters) - Northwest Airlines <NWACQ.PK> is being investigated by the U.S. Department of Labor over whether it depleted an employee pension fund for several years, then avoided payment by filing for bankruptcy protection, the New York Times reported on Wednesday.

Citing Department of Labor officials, the Times said the government has issued a subpoena for Northwest pension information dating back to 2002.

The reported also cited a Northwest spokesman saying the company had provided some of the documents but was seeking a protective court order to keep others confidential.

Investigators appear to be probing the steps that led to a $5.8 billion shortfall in Northwest's pension fund to see if it violated any laws.

The aim would be to prevent other companies in distress from dipping into pension funds and then using bankruptcy proceedings as a way to transfer the obligations to the government, the report said.

Northwest officials could not immediately be reached for comment.



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