Freedom Communications Pension’s $8 Million Deal Challenged

A $7.8 million settlement between two former owners of Freedom Communications Inc. and the federal pension insurer is collusive and shouldn’t be approved, a purported adviser to Freedom’s pension plan told a Central District of California judge.

The proposed deal between the Pension Benefit Guaranty Corp. and ex-Freedom owners Aaron Kushner and Eric Spitz is a “collusive attempt to conceal the amount actually to be received by the PBGC in this case,” Richard J. Covelli said in a Sept. 9 objection.

The PBGC accused Kushner and Spitz of causing tens of millions of dollars in losses to Freedom’s pension plan ...