FIDUCIARY/PENSIONS ALERT: Post-Petition Retirement Benefits Form Administrative Claims
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FIDUCIARY/PENSIONS ALERT: Post-Petition Retirement Benefits Form Administrative Claims

Third Circuit - New Jersey - June 16, 2011.  As a matter of first impression, the court ruled that Chapter 11 debtors in a bankruptcy proceeding that withdraw from multiemployer pension funds are required to classify employee benefits associated with post-petition work as administrative expenses.  Reconciling ERISA and bankruptcy law, the court determined that the employer improperly designated millions of dollars in liability for unfunded pension benefits as a general unsecured claim. 

 

78In re Marcal Paper Mills, Inc. 6-11.pdf