PBGC Objects to California Coastal Ch. 11 Plan

Law360, New York (August 10, 2010, 6:25 PM EDT) -- The Pension Benefit Guaranty Corp. has objected to California Coastal Communities’ reorganization plan, arguing that it conflicts with the home builder's disclosure statement by failing to mention whether the debtor's pension plan will be continued after reorganization.

The objection, filed Friday in the U.S. Bankruptcy Court for the Central District of California, pointed out that California Coastal’s approved disclosure statement explicitly states that the pension claims are not impaired, while the recently filed reorganization plan contains no such language and fails to address the pensions at...
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