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Bankruptcy Court Permits 363(f) Sale of Business Free of Pension Claim

Introduction A pension plan unsuccessfully tried to stop a company from selling a business to a buyer in a 363(f) (3) sale free and clear of the seller’s pension fund liability. The deal The seller was engaged in environmental and

Posted in 363(f)(3) sale, asset purchase agreement, bankruptcy sale, distressed business acquisitions, federal multiemployer pension plan withdrawal liability, successor liability Tagged with: , , , , ,

Buyer’s purchase price may triple post-closing because of underfunded union pension plan

Seller was a wire-forming company. A collective bargaining agreement with the union representing its workforce obligated Seller to contribute to a multiemployer pension plan on behalf of the employees. In September 2013, after Seller determined that it could not stay

Posted in asset purchase agreement, constructive knowledge, distressed business acquisitions, federal multiemployer pension plan withdrawal liability, multi-employer pension plan, successor liability, union liabilities

Court finds that buyer of a California union skilled nursing facility had no constructive knowledge of seller’s multi-employer pension plan withdrawal liability

This is a follow up to a discussion of an earlier June court decision involving the same business buyer. http://www.mk-law.com/wpblog/buyer-of-a-california-union-skilled-nursing-facility-faces-multi-employer-pension-plan-withdrawal-liability-if-buyer-had-constructive-knowledge-of-the-potential-liability/ Buyer purchased a 99-bed skilled nursing facility located Santa Clarita, California from Seller through an asset purchase agreement that closed

Posted in asset seller's liabilities, constructive knowledge, due diligence, federal multiemployer pension plan withdrawal liability, multi-employer pension plan, post asset purchase issues, successor liability, union liabilities

Court finds a buyer of assets of a Maui hotel with union employees liable for the seller’s unfunded pension plan liability

A federal court of appeals recently held that the buyer of the assets of a hotel was required to pay seller’s unfunded union pension liability to its multiemployer pension plan. The buyer, a private equity group, entered into a purchase

Posted in federal multiemployer pension plan withdrawal liability, successor liability

Asset buyer of electrical contractor business may have liability for seller’s multiemployer pension plan withdrawal charges

The buyer in this case may end up being stuck with a liability of the seller, that the buyer did not assume in the asset purchase agreement, that is 2.5 times the amount the buyer paid the seller for the

Posted in federal multiemployer pension plan withdrawal liability, successor liability

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