Author: Nicholas Geti
Posted: 2012-01-06 at 16:51:26
Most pension funds in the U.S. both public and private are not fully funded.
In fact most are in arrears. That is why the retirees will get nothing. The
purpose of a bankruptcy is to shed obligations. All contracts are null and
void unless the bankruptcy courts rules otherwise when or if the new entity
assumes control. If the old entity is completely dissolved, then the
retirees may get something but they have to stand in line with all the other
creditors. The lawyers get paid first.
If the old entity is reorganized, then the judge will decide which contracts
will be allowed and which will be terminated. I doubt that the pension
contracts would survive.
----- Original Message -----
From: "Michael Madigan" <mmadi10699@yahoo.com>
To: "ProFox Email List" <profox@leafe.com>
Sent: Friday, January 06, 2012 1:01 PM
Subject: Re: [OT] Kodak near bankruptcy
I don't know. I thought pensions were required to be fully funded.
Most likely they won't lose their pensions, just possibly have to contribute
more to their healthcare.
----- Original Message -----
From: "MB Software Solutions, LLC"
<mbsoftwaresolutions@mbsoftwaresolutions.com>
To: ProFox Email List <profox@leafe.com>
Cc:
Sent: Friday, January 6, 2012 12:53 PM
Subject: Re: [OT] Kodak near bankruptcy
On 1/6/2012 12:24 PM, Michael Madigan wrote:
> No, because bankruptcy doesn't mean closing the company. General Motors
> would have been able to reorganize under chapter 11, restructure their
> pension system, and restructure their debt. Instead we have the government
> bailing them out, forcing it to build a PoS car like the Chevy Volt, and
> they're in no better shape now than before. Then add to it the billions
> that the American taxpayer lost and will never recover.
Reminds me of that article on Kodak. Will those retirees get screwed
out of their pensions if Kodak goes to bankruptcy?
--
Mike Babcock, MCP
MB Software Solutions, LLC
President, Chief Software Architect
http://mbsoftwaresolutions.com
[excessive quoting removed by server]
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