King & Spalding Advises Client on Chapter 7 Benefits Matters

King & Spalding advised our client with all employee benefits matters connected to the permanent shutdown of its manufacturing plant in Chapter 7 bankruptcy. Our client has a complicated employee benefits structure, including both collectively bargained and non-collectively bargained defined benefit and defined contribution retirement plans, self-insured health plans, retiree health plans, and two voluntary employees beneficiary association (VEBA) trusts, and is owned by a private equity firm. Our involvement included negotiations with the labor union regarding all collectively bargained benefit plans, analyzing options related to the possible requirement of providing lifetime COBRA continuation coverage to retirees (including possible controlled group liabilities), analyzing options for the retirement plans, reporting and disclosure obligations, and coordinating with corporate and bankruptcy counsel for the interested parties.