Sale Doesn't End Energy Firm's Pension Duty, 2nd Circ. Says

Law360, New York (May 3, 2012, 4:03 PM EDT) -- The Second Circuit on Thursday found that the sale of a business unit doesn't necessarily release a company from pension fund obligations, favoring a union that argued HOP Energy LLC owed $1.2 million in contributions after selling its New York City oil operations.

The appeals court upheld a lower court's determination that, even though HOP sold its New York oil unit to Approved Oil Co., it still was on the hook for its obligations to Local 553's pension fund under a collective bargaining agreement. The terms...
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