Law360, New York (October 13, 2011, 10:10 PM ET) -- The Fifth Circuit on Thursday reversed a lower court's decision that Sterling Chemicals Inc. could raise premiums for a class of retiree workers acquired in a merger because the company had rejected the merger contract during Chapter 11 bankruptcy proceedings.
While Sterling may have ended its obligations to Cytec Industries Inc. under a 1996 asset purchase agreement, the provision detailing benefits plans for former Cytec workers — section 5.05(f) of the agreement — was assumed as part of Sterling's benefits plan and remained valid and enforceable...
Chemical Co. Can't Raise Retiree Premiums: 5th Circ.
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