Case Study: In Re Marcal Paper Mills

Law360, New York (October 19, 2011, 2:42 PM EDT) -- The Court of Appeals for the Third Circuit decided an issue of first impression in In re Marcal Paper Mills Inc, No. 09-4574 (3rd Cir. June 16, 2011), holding that a Chapter 11 company that withdraws from a multiemployer pension plan incurs administrative expense liability for that portion of withdrawal liability attributable to employee work performed during the postpetition period.

The Third Circuit's Marcal decision seems to follow the established test for administrative expense liability articulated in the Jartan and Mammoth Mart cases — i.e., that...
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