Visteon's Impact On Debtors' Ability To Cancel Benefits

Law360, New York (August 20, 2010, 3:15 PM EDT) -- As companies struggle to survive in a distressed economy, one of the main drags on earnings and profitability are the enormous unfunded legacy costs to employees and retirees. Escalating legacy costs attributable to employee pension plans and retiree benefits — primarily agreements to provide health insurance — have been identified as a precipitating factor in numerous high-profile Chapter 11 cases as companies seek to reap the benefits of the Bankruptcy Code to reduce or eliminate those liabilities from their balance sheets.

In response to earlier bankruptcy...
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