Contact:
Hartgen
(703) 739-0800
color='#0000ff'>jhartgen@abiworld.org
COMPANIES
SHEDDING PENSIONS ABUSE THE BANKRUPTCY SYSTEM, ACCORDING TO MAJORITY IN
LATEST ABI POLL
size='3'>June 22, 2006, Alexandria, Va.
size='3'>— Sixty-three percent of respondents to the recent
American Bankruptcy Institute online poll agreed that the practice of
corporate debtors to shed their defined benefit pension plans onto the
Pension Benefit Guaranty Corp. (PBGC) is an abuse of the bankruptcy
system. Of the majority of respondents, 52 percent “strongly
agreed” and 11 percent “somewhat agreed” that
corporate debtors transferring defined benefit pension plans onto the
PBGC is an abuse of the bankruptcy system.
Conversely, 19 percent of
respondents “disagreed strongly” and another 10 percent
“disagreed somewhat” that the practice is an abuse of the
bankruptcy system. Eight percent of the respondents did not know or had
no opinion on the issue.
ABI membership and members of
the public were welcome to submit their response to the statement:
“The ability of corporate debtors to shed their defined benefit
pension plans onto the PBGC is an abuse of the bankruptcy
system.” More than 100 people participated in this latest
ABI Quick Poll, which was open for voting from June 16 – June
22.
The poll question was based on
reports that the PBGC is operating under a $22.8 billion deficit after
assuming the liabilities of pension plans of recently bankrupt companies
in the airline, automotive and steel industries. The move to terminate a
pension is one of the most controversial practices in chapter 11
today.
The ABI Quick Poll is posted on
ABI’s home page,
face='Times New Roman' color='#800080'
size='3'>www.abiworld.org
size='3'>. ABI members and the public are invited to respond to a
question on a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff' size='3'>http://www.abiworld.net/quickpoll/
to access the results of previous
ABI Quick Polls.
###
ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
11,500 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit www.abiworld.org. For additional conference
information, visit
href='/Content/NavigationMenu/MeetingsEvents/UpcomingEvents/Events_Intro_Page1.htm'>
color='#0000ff'>http://www.abiworld.org/conferences.html.