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Legalease, Attorney
Category: Business Law
Satisfied Customers: 16379
Experience:  14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
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My company may be heading into Receivership - a large

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My company may be heading into Receivership - a large corporation HCR Manorcare housed in Toledo Ohio - they are in default over 250 Million. The suit was filed yesterday. I have a Senior Mgmt plan 75529. Fidelity tells me it is in jeporady. I can separate from my company as of yesterday. Is that the right thing to do - I am fully vested and early retirement age.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Corporate office in Toledo Ohio - I believe the Corporation is registered in Delaware.
JA: Has anything been filed or reported?
Customer: The suit was filed yesterday in a court in California - suing for receivership
JA: Anything else you want the lawyer to know before I connect you?
Customer: My real question is it the best thing I can do is separate from my company at this time. They have a large legal representation and possibly they could try to delay this from happening - or they could file for bancruptcy.
Customer: replied 2 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 2 months ago.
Let me know if you need more information, or send me the service offer(s) so we can proceed.

Hello there --

If the company goes into receivership and then files for bankruptcy in federal court, if you are not a union member then the first thing that the company tries to dump is the pension plans they are carrying for persons already retired and those who are fully vested and can retire. What happens when they do that is then the U.S. Pension Benefit Guarantee Corporation must step in to manage the pensions but the reality is that if you currently are entitled to a wonderful retirement plan and you have not retired, the first payments "cut" are the pension guarantees to employees who have not yet retired and then the PBGC starts to cut current retirees benefits. When the airlines all went into bankruptcy in the 80's and 90's many retired and close to retired employees ended up with pennies on the dollar they were promised as regular retirement benefits. It was a bloodbath.

With your company, everything will hang on a potential bankruptcy filing, the amount of money they can pay and whether or not the Court requires the company to find another buyer for the company so it can move forward with financial stability. To be perfectly honest with you, even if you retire now, your benefits may be in jeopardy if the case goes the full bankruptcy route. However, if or when the case comes to the US PBGC, they will typically try to salvage as much as they can for already retired employees. This is a decision only you can make right now and the only thing I can tell you is that the amount and status of your pension can be dumped on the government at any point and you simply may not end up with as much as you thought you would every month. To make your decision, you really have to know how bad the company debt is versus the likelihood of the company finding non bankruptcy financing to assist with the debt without filing for bankruptcy. As part of Senior Management you probably know how bad it is and the likelihood that non bankruptcy financing comes through and you should discuss all of this with your financial adviser before making a final decision (if you have a financial adviser).

I actually answered this question in the regular format before I saw your requests for a telephone call so I decided to finish answering it and let you decide if you still need a telephone call -- generally speaking I will tell you what I told you above but the cost is an additional $70 dollars or so (Just Answer sets the final rate so I am uncertain what that will be), but I am happy to extend the premium service offer if you still want to speak with me. Regarding this current question, I ask that you press a positive rating in the ratings section so that I will be paid for my time (if you fail to press a positive rating, the website is paid but I am not). Even after a positive rating is pressed I am available for reasonable follow up questions either via this post or via a telephone call if you feel you need to talk after you get a bit more knowledge regarding what the likelihood of a complete wipeout and bankruptcy turnover is in a few more weeks. I wish you nothing but the best.


Mary "Legalease"

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