Chemical Co. Can't Raise Retiree Premiums: 5th Circ.

Law360, New York (October 13, 2011, 10:10 PM EDT) -- The Fifth Circuit on Thursday reversed a lower court's decision that Sterling Chemicals Inc. could raise premiums for a class of retiree workers acquired in a merger because the company had rejected the merger contract during Chapter 11 bankruptcy proceedings.

While Sterling may have ended its obligations to Cytec Industries Inc. under a 1996 asset purchase agreement, the provision detailing benefits plans for former Cytec workers — section 5.05(f) of the agreement — was assumed as part of Sterling's benefits plan and remained valid and enforceable...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.