What I’m reading…
A Sqyuishy quest to further educate continues…
Update 2:
Pension Debt is unsecured debt. Like a credit card. Pretty sweet huh? So that money you were promised, gauranteed, poured your blood sweat and tears for, is worth less than the paper it was written on. It is an albatross tied around a companies neck going into or coming out of BK
Delaware’s BK Court heavily favors the Debtor (company filing bk) which means creditors get screwed, which means pensioners get screwed. (here that DuPont pensionee’s?) In fact courts want the big cases and show a bias to debtors to get those cases….Delaware stands out and NY too.
Pg 59: In the 1980’s companies found their pension coffers overflowing. That money wasn’t for pensions since it went above and beyond what should have been in there. Several companies went after that money: EXXON, UNION CARBIDE, PACIFIC LUMBER, OCCIDENTAL PETROLEUM
Pg 91 in 2006 Hedge Fund company Avenue Capital specializing in Vulture style debt management, gentlier called “distressed debt market” hired Chelsea Clinton
and finally for today….this quote:
“It becomes a factor you price into the deal. It’s not dissimilar to looking at an industry with an asbestos claims.”
