The Conversation (0)
Bankrupt Company News reported that the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and its Local Union 662 have filed an objection to Molycorp’s (OTCMKTS:MCPIQ) reorganization plans.
Bankrupt Company News reported that the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and its Local Union 662 have filed an objection to Molycorp’s (OTCMKTS:MCPIQ) reorganization plans.
As quoted in the publication:
The objection asserts, “Pursuant to a December 19, 2001 shutdown agreement between Magnequench International and the UAW, the Company is required to provide retiree health insurance and prescription drug coverage to certain of its retired hourly employees. The Plan provides for two alternative plan structures: an Entire Company Sale or a Stand-Alone Reorganization. Section 5(B) of the Plan (‘Employee Compensation and Benefits Programs’) provides that if the Entire Company Sale does not occur, the Reorganized Debtors shall continue their Compensation and Benefits Programs. However, it also provides: ‘Nothing herein shall preclude the Debtors or the Reorganized Debtors from making any changes to or terminating any of their Compensation and Benefits Programs in accordance with applicable law.’….Section 5(B) does not meet the requirements of Section 1129(a)(13) of the United States Bankruptcy Code. Therefore, unless the Plan is modified to comply with Section 1129(a)(13), the UAW objects to its confirmation.”