The Pension Benefit Guaranty Corporation (PBGC) has released a statement on the reorganization plan of Avaya, a multinational communications solutions company. The plan includes a proposal to maintain its pension plan for hourly employees but end its pension plan for salaried employees.
by Louise Bechamp A recent arbitration decision out of the province of Quebec (available in French only) involving the director of a bankrupt corporation serves as a reminder that directors can be personally liable for unpaid employee wages, notice of termination, and vacation pay.
By Marie-Gabrielle Bélanger The purchaser of all the assets of a bankrupt business will be bound by the employment contracts of the bankrupt company and must therefore honor these contracts. So ruled the Court of Appeal of Quebec in a recent decision, Aéro-Photo (1961) Inc. c. Raymond (available in French only).
To expedite distribution of retirement assets from companies in Chapter 7 bankruptcy proceedings, the U.S. Department of Labor wants to allow bankruptcy trustees to use its Abandoned Plan Program. This program establishes a process to terminate abandoned plans so that plan participants and beneficiaries gain quicker access to their benefits; currently, however, bankruptcy trustees do […]
When American Airlines and its parent company, AMR Corp., filed for bankruptcy in November, many industry watchdogs dismissed the event as a chance for the airline to restructure and bring down costs. Which is why the developing skirmish between the #3 airline carrier and the Pension Benefit Guaranty Corporation (PBGC) since then has been like […]
Litigation Value: $0. For the second week running, our favorite paper company largely avoided any obvious liability on the employment law front. In fact, Dunder Mifflin may have a (nominal) claim of its own against Michael Scott and his road-tripping entourage, based on their unauthorized limousine frolic. If this were a securities or bankruptcy law […]
Litigation Value: $0. Shockingly no one did anything illegal in this episode. Dunder Mifflin suffered a full day’s lost productivity due to Corporate’s poor handling of the bankruptcy situation. In this week’s episode, the recession finally hit Dunder Mifflin. Faced with such stress, I would have expected the Scranton branch to become a plaintiff’s lawyer’s […]
By Leanne Fioravanti and Stephen Acker In these tough financial times, a number of companies are trying to reorganize themselves in order to avoid insolvency or bankruptcy. In Canada, there are several laws that help facilitate this process: the Companies Creditors Arrangement Act (CCAA) and the Bankruptcy and Insolvency Act (BIA). For the most part, […]
The current recession has taken its toll on the United States, and many Americans are still fighting to stay financially afloat. Consumer confidence is down. According to the American Bankruptcy Institute, consumer bankruptcies rose by 24 percent nationwide in August from the same period a year ago, and during the first six months of 2009, […]
by Robert P. Tinnin, Jr. Q: I’m the owner of a business that sells big-ticket home furnishings. While reading the paper today, I discovered that my credit manager has filed for bankruptcy. Obviously, when the word gets around, it will really make me look like a fool! I want to fire him immediately, but a […]