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Horned Frog Athletics
Scott & Wes Frog Fan Forum
FW Star-Telegram Owner Declares Bankruptcy
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<blockquote data-quote="froginaustin" data-source="post: 2830057" data-attributes="member: 785"><p>The Bankruptcy Code treats unpaid pension obligations as a 5th priority claim. That's above even the tax collectors, and right after the priority order of unpaid current wages. That's the good news.</p><p></p><p>The bad new is pretty bad, and it comes pretty quickly. Pension commitments are treated as priority only to the extend the commitments came due within 180 days before the bankruptcy filing, and they are limited in amount to $13,650 less the amount of priority wages paid.</p><p></p><p>The above is a meatball description, but more or less generally accurate.</p><p></p><p>If McClatchy is as underfunded as the article linked above suggests (no reason to think the article isn't correct; <em>Forbes</em> writers and editors tend to know about this sort of thing), the possibility that someone will take a serious bath on pensions is real. The pensioners better hope that the pbgc can/will kick something in.</p><p></p><p>Or the pensioners may have to take common stock in a reorganized McClatchy (usually, yuck), for some part of what they are owed.</p><p></p><p>Or if the company ends up liquidating, the pensioners may be SOL to the extent a guaranty doesn't help them out. Administrative claims, including lawyers' fees for the bankrupt and for any official creditors' committees, come before priority wage and pension claims.</p></blockquote><p></p>
[QUOTE="froginaustin, post: 2830057, member: 785"] The Bankruptcy Code treats unpaid pension obligations as a 5th priority claim. That's above even the tax collectors, and right after the priority order of unpaid current wages. That's the good news. The bad new is pretty bad, and it comes pretty quickly. Pension commitments are treated as priority only to the extend the commitments came due within 180 days before the bankruptcy filing, and they are limited in amount to $13,650 less the amount of priority wages paid. The above is a meatball description, but more or less generally accurate. If McClatchy is as underfunded as the article linked above suggests (no reason to think the article isn't correct; [I]Forbes[/I] writers and editors tend to know about this sort of thing), the possibility that someone will take a serious bath on pensions is real. The pensioners better hope that the pbgc can/will kick something in. Or the pensioners may have to take common stock in a reorganized McClatchy (usually, yuck), for some part of what they are owed. Or if the company ends up liquidating, the pensioners may be SOL to the extent a guaranty doesn't help them out. Administrative claims, including lawyers' fees for the bankrupt and for any official creditors' committees, come before priority wage and pension claims. [/QUOTE]
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FW Star-Telegram Owner Declares Bankruptcy
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