Visteon Must Restore Retiree Benefits: 3rd Circ.

Law360, New York (July 13, 2010, 4:43 PM EDT) -- An appeals court said Tuesday that Visteon Corp. must restore retiree benefits that were wiped out during the auto parts maker's bankruptcy, a break with the majority of federal court rulings that have allowed companies in bankruptcy to terminate retiree plans.

The U.S. Court of Appeals for the Third Circuit reversed a district court's affirmation of a bankruptcy judge's ruling that terminated the benefit plans of 8,000 Visteon retirees, their spouses and dependents.

The dispute centered around whether Visteon could legally stop paying benefits during Chapter...
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