PBGC Says Dura Sale Must Include Pension Liability

Law360 (May 8, 2020, 3:48 PM EDT) -- The federal Pension Benefit Guaranty Corp. is asking the Delaware bankruptcy court to reject provisions of Dura Automotive's planned Chapter 11 sale that it said could allow the company's nonbankrupt subsidiaries to escape more than $42 million in pension liabilities.

In a Thursday filing, the PBGC argued that language in the proposed sale agreements and orders could be interpreted to let Dura subsidiaries off the hook for their share of the millions Dura will owe the PBGC when the federal agency takes over Dura's pension plan.

Last week, Dura asked the court for quick action on proposed asset sales to affiliates...

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