In Bankruptcy, Bankruptcy In The News, Blog, Chapter 11 Bankruptcy

The delay in issuing an opinion has been due to the two very different restructuring plans that have come from the creditors in this Chapter 11 bankruptcy case. Last week, the judge heard comments from two more parties to the debate, the U.S. Department of Labor and the Internal Revenue Service. Based on all of this information, as well as the bankruptcy filing itself, everyone involved in the case hopes that a resolution will be filed by the judge by next week.

One of the main issues of contention was whether the company had violated the federal Employee Retirement Income Security Act (ERISA). Both the IRS and the Department of Labor contend that the company did violate ERISA, and should be forced to pay several million dollars in fines as a result.

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