Contact:
Hartgen
(703) 739-0800
href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org
TERMINATION
OF MULTIPLE PENSION PLANS BY A BANKRUPT COMPANY SHOULD BE ANALYZED ON AN
AGGREGATE BASIS, ACCORDING TO LATEST ABI POLL
size='3'>February 5, 2007, Alexandria, Va.
— Nearly half (49 percent) of respondents in a recent American
Bankruptcy Institute online poll said that an employer looking to
terminate more than one pension plan in a chapter 11 proceeding should
have the plans analyzed on an aggregate rather than a plan-by-plan
basis. Twenty-six percent of respondents “agreed strongly”
and another 23 percent “somewhat agreed” that the
termination of pension plans by a company in chapter 11 should be done
on an aggregate rather than case-by-case basis.
Thirty-seven percent disagreed
that termination of multiple pension plans should be considered on an
aggregate basis, rather than case-by-case, for bankrupt companies.
Twenty-nine percent “disagreed strongly” and another eight
percent “somewhat disagreed” that the multiple pension plans
should be analyzed on an aggregate basis for chapter 11 companies
looking to terminate them during the reorganization process.
The poll question is
based on a recent case (
size='3'>In re Kaiser Aluminum), in which the
U.S. Court of Appeals for the Third Circuit unanimously held that when
an employer in chapter 11 seeks to terminate more than one pension plan,
the plans must be analyzed on an aggregate rather than a plan-by-plan
basis.
ABI members and members
of the public were welcome to submit their response to the statement:
“When an employer
in chapter 11 terminates more than one pension plan, the plans must be
analyzed on an aggregate rather than a plan-by-plan basis.
(In re Kaiser Aluminum
face='Times New Roman' size='3'>).”
size='3'>The latest ABI Quick Poll was open for voting from Jan. 20 -
Jan. 31.
ABI’s weekly Quick Poll
is posted on ABI’s home page,
href='http://www.abiworld.org/'>
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='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.