1st Impressions — In Re Marcal Paper Mills

Law360, New York (September 7, 2011, 1:21 PM EDT) -- Until 2011, no Federal Circuit court of appeals had ever directly addressed whether multiemployer pension plan withdrawal liability incurred by a debtor-employer that continues to employ workers during a bankruptcy case is entitled (in whole or in part) to administrative expense status. That changed on June 16, when the Third Circuit handed down its ruling in In re Marcal Paper Mills Inc., 2011 (3d Cir. June 16, 2011).

Addressing the issue as a matter of first impression, the court of appeals affirmed a district court’s reversal...
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