(2005-09-22) Miller Pension Dumper

Mary Williams Walsh on Robert S Miller, whose Turn Around specialty is dumping BigCo Pension plans on the PBGC. James A Wooten, a pension-law historian who is a professor at the University at Buffalo Law School, said that US Congress knew it was creating an imperfect system when it established the pension corporation in 1974, and that it expected to make improvements later... To unload the pension fund, however, Delphi would have to declare Bankruptcy; a company cannot send an unwanted pension plan to the government without first persuading a bankruptcy judge that it cannot otherwise survive. And if Delphi is to file bankruptcy, it may have to decide quickly. New, stricter bankruptcy laws take effect on Oct. 17, and companies that declare bankruptcy after that date will face a range of restrictions on how much they can pay in executive bonuses (Executive Compensation) and on how long they can take to work on their ReOrg plans.