Withdrawing From Multiemployer Defined Benefit Claims
July 25, 2011, 2:40 PM EDT
Law360, New York (July 25, 2011, 2:40 PM EDT) -- In a case of first impression, the United States Court of Appeals for the Third Circuit concluded in In re Marcal Papers Mills Inc., No. 09-4574 (3d Cir. June 16, 2011) that an employer’s withdrawal liability under a multiemployer defined benefit pension plan attributable to the post-petition time period constitutes an administrative expense entitled to priority under the Bankruptcy Code.
The court was affirming a ruling by the United States District Court for the District of New Jersey. The Third Circuit’s decision is important because debtors...