NEW YORK — TWA Chairman Carl C. Icahn has made his first formal offer to settle a $1.2-billion shortfall in the airline's pension fund, the federal agency that insures workers pensions said Monday.
The Pension Benefit Guaranty Corp., which said Icahn made his offer last week, said the proposal was unacceptable, but made a counteroffer Friday, a spokeswoman said.
Icahn made the offer in a meeting with PBGC Executive Director James B. Lockhart, said the spokeswoman, who did not elaborate.
Although the sides have been talking for months, Icahn had not presented a formal offer to settle the issue. The pension agency recently agreed not to stand in the way of Trans World Airlines' bankruptcy reorganization and agreed to pursue Icahn's assets and those of his businesses for the shortfall after he sells TWA.