Oneida Can't Discharge PBGC Fees: 2nd Circ.

Law360, New York (April 9, 2009, 12:00 AM EDT) -- A federal appeals court has found that formerly bankrupt flatware maker Oneida Ltd. may not discharge fees owed to the Pension Benefit Guaranty Corp. in connection with terminating a benefit plan, reversing a ruling by the bankruptcy court judge.

On Wednesday, the U.S. Court of Appeals for the Second Circuit reversed the ruling by the U.S. Bankruptcy Court for the Southern District of New York and remanded the case upon concluding that the termination fees are not prepetition unsecured debt, and therefore can't be dropped through...
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