Labor & Employment Law, Bankruptcy

Nonresident Employee Avoids New York Taxes On Deferred Compensation Payment

by Angela Bohmann | Leonard, Street and Deinard - Employee... on 5/13/2013

A taxpayer we will call John worked for a savings bank in New York that was acquired by Washington Mutual Bank. John participated in the New York bank’s supplemental executive retirement plan (SERP) and its deferred...more

Changes Afoot for ERISA “Reportable Event” Rules

by Mark Hamilton, Kellie Thomas | White & Case LLP on 5/10/2013

As many as 90% of pension plans and pension plan sponsors may soon have fewer “reportable events” to track and report to the Pension Benefit Guaranty Corporation (the “PBGC”), if certain proposed changes to the PBGC...more

District Court Limits the Collection of Withdrawal Liability Against Private Equity Funds

by Anthony Cacace, Neal Schelberg | Proskauer - ERISA Practice Center on 5/9/2013

In Sun Capital Partners III, LP v. New England Teamsters and Trucking Industry Pension Fund, 2012 WL 5197117 (D. Mass. Oct. 18, 2012), a federal district court in Massachusetts concluded that a private equity fund was not a...more

Will American Airlines CEO Pocket $20 Million Severance Payment? BAPCA § 503(c) Restrictions on Insider Severance Have No Teeth...

by Timothy Durken on 5/8/2013

This article examines the April 2013 American Airlines decision denying $20 million CEO severance payment under § 503(c) but seemingly adopting the exception set forth in In re Journal Register Co. allowing for the insider...more

Bankruptcy Claims vs. Class Actions: Southern District of New York Finds Class Action Process Superior

by Ferve Ozturk | BakerHostetler on 5/2/2013

In bankruptcy proceedings, is a class action superior to the claims administration process as a vehicle for resolving claims under the federal and New York State Workers Adjustment and Retraining Notification Act (the “WARN...more

Settlements Redux: A Brief Follow-Up From My Bankruptcy Post

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/30/2013

I received a number of e-mails on my three-part series on settlements, which ran over the past few weeks. Of those e-mails, several dealt with a topic I raised in Part 3 - accounting for the possibility of a settling...more

Settlements (Part 3 of 3): Dealing With a Defendant's Bankruptcy in Non-Compete Litigation

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/17/2013

This is largely a plaintiff-centric column, offering some practical points to consider when assessing the risk of bankruptcy in connection with non-compete (or other competition) litigation. Though many non-compete suits...more

PBGC Proposes New Regulations Under Reportable Events Rule

by Lisa H. Barton, Brian J. Dougherty, R. Randall Tracht | Morgan Lewis on 4/12/2013

New rules signal relief for financially sound plans and plan sponsors and are consistent with PBGC's section 4062(e) enforcement policy for "plant shutdown" liability....more

Proposed Regulations May Affect Default Risk for Borrowers with Pension Plans

by Mark Jones, Matthew Ryan | Pillsbury Winthrop Shaw Pittman LLP on 4/12/2013

The Pension Benefit Guaranty Corporation (PBGC) has proposed regulatory safe harbors waiving the obligation of financially sound defined benefit pension plans and the companies that maintain them from the duty to report...more

Dechert OnPoint: NDNY Bankruptcy Court's Broad Interpretation of the Definition of "Interests" in 363 Sale

by Matthew Ginsburg | Dechert LLP on 4/12/2013

A recent decision out of the Bankruptcy Court for the Northern District of New York has brought greater certainty to the interpretation of what qualifies as an “interest” when determining the scope of a Section 363(f) “free...more

New York Bankruptcy Court Adopts Expansive View of Section 363 Free and Clear Assets Sales

by Dechert LLP on 4/8/2013

Introduction - In a recent decision, the Bankruptcy Court for the Northern District of New York broadly interpreted the meaning of “interest” in the context of determining the scope of a sale free and clear of “liens,...more

Bankrupt Municipality May Reduce Retiree Benefits

by Aaron Kleven | Sheppard Mullin Richter & Hampton LLP on 3/15/2013

The bankruptcy of the largest U.S. city to file a chapter 9 bankruptcy petition has yielded a decision with serious implications for municipal creditors. Specifically, the United States Bankruptcy Court for the Eastern...more

Indalex: What Are the Pension Implications?

by Lesha Van Der Bij | Osler, Hoskin & Harcourt LLP on 2/13/2013

On February 1, 2013, the Supreme Court of Canada released its much anticipated decision in Sun Indalex Finance, LLC v. United Steelworkers, a case which pitted the claims of pensioners against those of secured creditors in...more

New Concerns for Bondholders, Lenders and Other Creditors Following SCC’s Indalex Decision

by Richard Orzy, Raj Sahni, Kevin Zych | Bennett Jones LLP on 2/13/2013

On February 1, 2013, the Supreme Court of Canada (SCC) released its much-awaited decision in the Indalex case. While the central issue in Indalex was the priority of wind-up deficiencies in defined benefit pension plans...more

Non-Compete Case Law Update: The Mildly Interesting, But Useful, Edition

by Kenneth Vanko | Clingen Callow & McLean, LLC on 2/12/2013

The new year is off to a pretty big start. We've already seen significant decisions from federal appellate courts on criminal trade secrets prosecutions and the epic Mattel/MGA "Bratz" dolls dispute. We have a looming debate...more

Indalex: Supreme Court of Canada Decision Released

by Kenneth Kraft, John Salmas, Sara-Ann Van Allen | Heenan Blaikie LLP on 2/12/2013

The Supreme Court of Canada (“SCC”) recently released its much-anticipated decision in the Indalex Limited (“Indalex”) proceedings under the Companies’ Creditors Arrangement Act (the “CCAA Proceedings”). The decision is...more

Indalex: What Are the Pension Implications?

by Anthony Devir, Ian McSweeney, Lesha Van Der Bij | Osler, Hoskin & Harcourt LLP on 2/11/2013

“When a business becomes insolvent, many interests are at risk. Creditors may not be able to recover their debts, investors may lose their investments and employees may lose their jobs. If the business is the sponsor of an...more

Supreme Court of Canada Upholds Priority for DIP Lenders in CCAA Proceedings

by Michael N. Atlas, Lisa Corne, David Preger, Michael Weinczok | Dickinson Wright on 2/7/2013

Overview - On February 1, 2013, the Supreme Court of Canada (the “SCC”) affirmed the priority granted to Debtor-In-Possession (“DIP”) lenders who provide capital to debtor companies undergoing the restructuring process...more

Employee Benefits in an Insolvency

by Domenico Magisano | Lerners LLP on 2/5/2013

In a judgment rendered in December 2012, the British Columbia Court of Appeal (“BC CA”) further clarified an insurer's priority for payment of unpaid health plan contributions. In Re: Ted Leroy Trucking Ltd. the bankrupt had...more

Obligations To Pensioners In An Insolvency: Supreme Court Clarifies The Law

by Mary Picard | Dentons on 2/4/2013

The Supreme Court of Canada overturned the Ontario Court of Appeal today in what is one of the most highly-anticipated cases for the pension and insolvency bars pending before the courts. In Indalex (Re) 2013 SCC 6, the court...more

Supreme Court of Canada Affirms Federal Paramountcy in Insolvency but Leaves Uncertainty for the Credit Community Regarding...

by Anthony Devir, Edward Sellers | Osler, Hoskin & Harcourt LLP on 2/1/2013

The Supreme Court of Canada released its highly anticipated decision in Indalex Limited (Re) this morning. The ruling stemmed from an appeal of an Ontario Court of Appeal decision that had created commercial uncertainty...more