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There are some tricks. "Spin off" a new company with all your pension liabilities and your unprofitable assets, whaddaya know, the new company goes bankrupt. Th
by cool_dude85 6y ago
There are some tricks. "Spin off" a new company with all your pension liabilities and your unprofitable assets, whaddaya know, the new company goes bankrupt. Then the courts can give the pensioners a haircut since the debt they're owed isn't secured.
https://www.reuters.com/article/us-patriot-bankruptcy/bankrupt-patriot-coal-asks-court-to-slash-union-pensions-idUSBRE93S09B20130429 https://www.reuters.com/article/us-patriot-bankruptcy/bankru...
- michaelmrose 6y agoPeabody may have spun off unprofitable operations and let them crash but how did it sepate assets and liabilities for the same operation?
- deleted 6y ago[deleted]
- anilakar 6y agoIn the US pension system, are the pension payments somehow delayed from the actual date that liability is accrued, i.e. the day the employee gets paid the first time? Is it legal for a company to pay a salary to their employees without having the financial assets to back all other liabilities? I can somehow see the twisted reasoning behind this, but it still feels wrong. Asking this as a foreigner and because such a system sounds so ripe for abuse that it would have already been fixed if it really was flawed and affected those pensioners' lives.