PE Cos. Aren't Businesses Under ERISA, 1st Circ. Hears

By Kaitlin Ugolik (April 4, 2013, 8:03 PM EDT) -- Sun Capital Partners on Wednesday asked the First Circuit to affirm that it is not responsible for $4.5 million in withdrawal liability to a New England pension fund group on behalf of a bankrupt portfolio company, saying investment firms are not considered trades or businesses under ERISA.

A Massachusetts federal judge ruled in October that Sun Capital was exempt form the liability because it is not a trade or business under the Employee Retirement Income Security Act, and therefore was not responsible for picking up the slack for bankrupt brass and copper coil manufacturer Scott Brass Inc. Sun Capital acquired Scott...

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