2nd Circ. Considers DRA Termination Premiums

Law360, New York (January 30, 2009, 12:00 AM EST) -- The U.S. Court of Appeals for the Second Circuit heard arguments on Thursday over whether the Deficit Reduction Act of 2005 requires flatware maker Oneida Ltd. to pay the Pension Benefit Guaranty Corp. special premiums for the termination of its pension funds after emerging from bankruptcy.

Oneida, which entered and emerged from Chapter 11 in 2006, is arguing that the premiums were prepetition claims by the PBGC that were discharged when its reorganization plan was approved. The PBGC maintains that when Congress passed the DRA, it...
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