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Treatment of Pension and Health Benefits in Chapter 11 Bankruptcy' 
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Report to Congressional Requesters:

United States Government Accountability Office:

GAO:

September 2007:

Employer-Sponsored Benefits:

Many Factors Affect the Treatment of Pension and Health Benefits in 
Chapter 11 Bankruptcy:

GAO-07-1101:

GAO Highlights:

Highlights of GAO-07-1101, a report to congressional requesters.

Why GAO Did This Study:

In recent years, considerable debate has centered on companies using 
the chapter 11 bankruptcy reorganization process to reduce or eliminate 
employer-sponsored benefits in an effort to become more competitive. 
Congress recently enacted several laws, in part, to help address this 
issue. Most notably, Congress passed the Bankruptcy Abuse Prevention 
and Consumer Protection Act of 2005 (BAPCPA) and the Pension Protection 
Act of 2006 (PPA). BAPCPA contained provisions related to chapter 11 
business bankruptcies and sought to address the treatment of benefits 
during the bankruptcy process. In addition, the PPA amended several 
Employee Retirement Income Security Act of 1974 (ERISA) provisions 
related to defined benefit (DB) plans in bankruptcy.

This report addresses (1) how, if at all, recent legislative changes 
affected the treatment of pension and health benefits during chapter 11 
bankruptcies, and (2) what is known about the extent to which 
businesses have modified employee or retiree pension and health 
benefits. GAO reviewed filings of 115 public companies that filed for 
bankruptcy between October 17, 2004 and October 17, 2006, and conducted 
interviews with various experts on the treatment of benefits in the 
bankruptcy process. Relevant federal agencies agreed with the findings 
contained in this report. 

What GAO Found:

The effects of recent legislation, including BAPCPA and PPA, on 
employers’ decisions to modify benefits are difficult to distinguish 
from the effects of other factors that lead to changes in benefits both 
within and outside of the bankruptcy process. Most bankruptcy 
professionals agreed that while BAPCPA included some changes that will 
affect the treatment of employer-sponsored benefits—such as the look-
back period for the reinstatement of retiree health benefits—it will 
not substantially affect employers’ decisions to modify benefits. Some 
bankruptcy professionals suggested that PPA may affect employers’ 
decisions to maintain their defined benefit (DB) plans. Bankrupt 
employers consider many other factors when trying to reorganize 
successfully, including competing claims, their stakeholders and 
creditors, and outside forces such as the financial market and industry 
competition. 

More information is known about the extent to which selected employers 
made benefit changes resulting in court decisions—i.e., changes to DB 
plans, retiree health benefits, and benefits covered by a collective 
bargaining agreement (CBA)—than changes not resulting in them—i.e., 
changes to defined contribution (DC) plans and active employee health 
benefits not covered by a CBA. Most of the 115 employers we reviewed 
did not offer benefits that specifically needed court approval to 
change. We found only 20 of these employers had DB plans, 18 had 
retiree health benefits, and 28 had employees covered by a CBA. Nine 
employers terminated at least one of their DB plans, and 3 have 
terminations pending; 5 sought to modify their retiree health benefits; 
and 8 sought to modify or reject CBAs. While most employers received 
approval to continue employee benefits in their initial motions, it is 
unknown how many employers that offered health benefits to active 
employees or DC plans continued to fund them because employers do not 
always need to seek court approval to change these benefits. 

[hyperlink, www.gao.gov/cgi-bin/getrpt?GAO-07-1101].

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Barbara Bovbjerg at (202) 
512-7215 or bovbjergb@gao.gov.

[End of Section]

Contents:

Letter:

Summary of Findings:

Concluding Observations:

Agency Comments and Our Evaluation:

Appendix I: Briefing Slides:

Appendix I: Select Information on Bankruptcy Cases Reviewed:

Appendix III: Comments from the Pension Benefit Guaranty Corporation:

Appendix IV: GAO Contacts and Staff Acknowledgments:

Abbreviations:

AOUSC: Administrative Office of the United States Courts:
BAPCPA: Bankruptcy Abuse Prevention and Consumer Protection Act of 2005:
CBA: collective bargaining agreement:
DB: defined benefit:
DC: defined contribution:
EBSA: Employee Benefits Security Administration:
ERISA: Employee Retirement Income Security Act of 1974:
PACER: Public Access to Court Electronic Records:
PBGC: Pension Benefit Guaranty Corporation:
PPA: Pension Protection Act of 2006:
SEC: Securities and Exchange Commission:

United States Government Accountability Office:
Washington, DC 20548:

September 6, 2007:

Congressional Requesters:

Each year, thousands of employers file for chapter 11 bankruptcy to 
reorganize their finances in an attempt to become profitable[Footnote 
1]. This process can often be contentious, as many stakeholders, 
including creditors, and employee and retiree groups, may be competing 
for diminishing portions of the employers' remaining assets. In recent 
years, considerable debate has centered on the use of the chapter 11 
bankruptcy process by employers to reduce or eliminate benefit 
obligations in an effort to become more competitive, and whether such 
benefit obligations have disproportionately affected employers in 
certain industries. For example, structural problems in industries such 
as airlines, steel, and automotive parts manufacturing have led large 
employers to declare bankruptcy and terminate their defined benefit 
(DB) plans[Footnote 2]. These recent high-profile bankruptcy 
reorganizations have frequently resulted in significant reductions of 
jobs and employee benefits--including wages, retirement, and health 
benefits--and resulted in the Pension Benefit Guaranty Corporation 
(PBGC) assuming billions of dollars in underfunded pension benefit 
obligations.

In recent years, Congress enacted several laws to, in part, help 
address some of these issues. Most notably, Congress passed the 
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 
(BAPCPA) and the Pension Protection Act of 2006 (PPA). BAPCPA sought to 
reduce the number of perceived abuses in consumer and corporate 
bankruptcy filings. Although BAPCPA mainly focused on consumer 
bankruptcies, it contained certain provisions related to chapter 11 
business bankruptcies and sought to address the ways in which employer-
sponsored benefits are treated during the bankruptcy process. For 
example, BAPCPA established a "look-back" period allowing courts to 
reinstate retiree health benefits to what they were before any 
modification by the employer during the 180 days prior to filing for 
bankruptcy. Among other things, PPA amended the Employee Retirement 
Income Security Act of 1974 (ERISA), including several provisions 
related to the termination and funding of DB plans in bankruptcy. In 
response to your interest in the effects of business bankruptcies on 
employee and retiree pension and health benefits, this report addresses 
(1) how, if at all, recent legislative changes have affected how 
businesses may treat pension and health benefits during chapter 11 
bankruptcies, and (2) what is known about the extent to which 
businesses have modified employee or retiree pension or health benefits 
in chapter 11 bankruptcies before and after changes in the bankruptcy 
law took effect.

To address these questions, we focused on the 115 public 
employers[Footnote 3] identified by the Securities and Exchange 
Commission (SEC) that filed for chapter 11 bankruptcy the year prior to 
and the year following BAPCPA's general enactment date--October 17, 
2005. Therefore, our analysis covers bankruptcy cases filed between 
October 17, 2004, and October 17, 2006. To identify key changes to the 
U. S. Bankruptcy Code and ERISA, we reviewed BAPCPA and PPA as well as 
other laws that affected the treatment of benefits. We interviewed 
bankruptcy professionals, including researchers, federal bankruptcy 
judges, and attorneys, to gain their insights on these changes and the 
potential effects they may have on benefits. The attorneys we 
interviewed have represented various stakeholders in the chapter 11 
process including unions, retiree committees, debtor employers, and 
creditors. We also interviewed officials that represented the 
government and the public at the PBGC, Administrative Office of the 
United States Courts (AOUSC), Department of Justice's U.S. Trustee 
Program, Department of Labor's Employee Benefits Security 
Administration (EBSA), and Department of the Treasury to obtain their 
insights on how recent legislative changes could affect the treatment 
of benefits in bankruptcy. Additionally, we interviewed officials at 
SEC to gain an understanding of public companies' SEC filings. We 
reviewed documents submitted in connection with court motions to change 
certain benefits (including DB plans, retiree health benefits[Footnote 
4], and benefits covered by collective bargaining agreements (CBA)), 
first day orders, and motions to continue employee benefits. We 
obtained and reviewed these publicly available documents from the 
Public Access to Court Electronic Records system (PACER). We also 
reviewed company information from annual SEC filings to identify 
employers' various benefit obligations. To provide contextual 
information, we obtained and analyzed data from AOUSC on all chapter 11 
cases filed over the period. We found these data to be sufficiently 
reliable for our purposes. The newness of BAPCPA and PPA and the small 
number of changes they contain affecting how employers can treat 
benefits, as well as the limited information readily available on 
benefit changes proposed and approved, made it difficult to assess the 
effects of these laws. We conducted our work between October 2006 and 
September 2007 in accordance with generally accepted government 
auditing standards. On August 23, 2007 and August 28, 2007, we briefed 
your staff on the results of our work using the briefing slides we 
include in appendix I. The report formally conveys the information 
provided during our briefings.

Summary of Findings:

In summary, the effects of recent legislation on employers' decisions 
to modify benefits are difficult to distinguish from the effects of 
other factors--both within and outside of the bankruptcy process. 
Several laws may affect the way employers treat employee and retiree 
benefit plans in bankruptcy, including the Bankruptcy Code and ERISA. 
BAPCPA and PPA--which amended the Bankruptcy Code and ERISA, 
respectively--included some provisions related to the ways that 
employers can treat benefits in the bankruptcy process. While BAPCPA 
included some changes that will affect the treatment of employer-
sponsored benefits in bankruptcy--such as the possible reinstatement of 
retiree health benefits to what they were before any modification by 
the employer during the 180 days prior to filing for bankruptcy--most 
professionals agreed that the act will not substantially affect 
employers' decisions to change benefits. Some bankruptcy professionals 
said that PPA may impact employers' treatment of benefits in bankruptcy 
and, in particular, how employers may seek to modify DB pension plans. 
For example, some bankruptcy professionals said that the additional 
time given to airlines to fund their DB plans contributed to at least 
two major airlines retaining some or all of their plans in bankruptcy; 
other professionals, however, said this change may not fully protect 
these DB plans in the long-term. Further, the National Labor Relations 
Act[Footnote 5] outlines how most employers can treat benefits covered 
by collective bargaining agreements, and the Railway Labor Act[Footnote 
6] can affect the treatment of benefits affecting airline and 
railroad employees. Bankrupt employers may also consider other factors 
when trying to successfully reorganize. For example, competing claims 
in bankruptcy, stakeholders and creditors, and other outside forces 
such as the financial market and industry competition, may contribute 
to employers' decisions to modify their employee benefit plans.

More information is known about the extent to which employers made 
benefit changes that involved specific court approval--such as the 
termination of DB plans, or changes to retiree health benefits or 
benefits covered by CBAs--than those that can usually be made without 
specific court involvement or approval--such as changes to DC plans or 
benefits for active employees not covered by CBAs. Most of the 115 
employers we reviewed did not offer benefits that specifically needed 
court approval to change. Specifically, we found that 20 of these 
employers offered DB plans, 18 offered retiree health benefits, and 28 
offered at least some employees benefits covered by a CBA[Footnote 7] 
Fewer than half of the employers with these types of benefits sought to 
modify them in bankruptcy. For example, in the year prior to and the 
year after the enactment of BAPCPA, nine employers terminated their DB 
plans, resulting in a $1.4 billion liability to PBGC. An additional 
three employers had terminations pending. Five employers sought 
approval to modify their retiree health benefits. The presence of a CBA 
adds another layer of complexity to how employers may treat benefits in 
bankruptcy. Generally, employers and unions negotiate any changes to a 
CBA--changes that often include benefit and wage cuts--outside the 
courts. Eight of the employers that reported having at least some 
employees with union representation sought to modify or reject at least 
one of their collective bargaining agreements. While most employers 
received approval to continue employee benefit plans in their first day 
orders, it is unknown how many employers that offered health benefits 
to active employees or defined contribution plans continued to fund 
them. In particular, employers do not need court approval to change 
these benefits if they are outside of a contractual agreement, although 
some employers may still seek such approval. Some bankruptcy 
professionals said that employers may stop making matching 
contributions to these plans or may not remit payments in a timely 
manner. However, experts stated that this information is often 
difficult to track.

Concluding Observations:

Employers continue to play a primary role in financing retirement 
income and health benefits for many workers. However, many are finding 
it challenging to provide these benefits in an increasingly competitive 
environment. Modifying benefit offerings as a cost-cutting measure is 
not unique to bankruptcy, and is a trend that is also occurring outside 
the bankruptcy process. In addition, changes in benefits, such as the 
shift from defined benefit to defined contribution plans, means that 
fewer employers may file motions to modify benefits in the future 
because these changes typically do not involve specific court approval. 
While additional time may be needed to more fully understand how recent 
legislation has affected employers' treatment of benefits in specific 
cases, the full impact of both of these laws on individuals' benefits 
or related federal programs may never be known because employers' 
decisions to modify benefits are part of a complex process, of which 
bankruptcy and pension laws are only a part.

Many stakeholders are involved in the decision to modify benefits, and 
striking a balance between maintaining employee benefits and successful 
reorganization can be difficult for all parties involved. Achieving 
this balance will often require successful negotiations between various 
stakeholders such as unions, creditors, debtors, and in some cases 
PBGC. Few employers have sought to modify their benefit plans in 
bankruptcy. However, when such modifications are made, the effect on 
employees, retirees, and related federal programs may be substantial.

Agency Comments and Our Evaluation:

We obtained technical comments on a draft of the briefing slides from 
cognizant agency officials, which we incorporated where appropriate 
prior to briefing your staff. After the briefing, we provided a draft 
of the entire report to officials of the Department of Labor, PBGC, 
Department of Justice, and the AOUSC. We received technical comments 
from PBGC and EBSA, which we have incorporated where appropriate. The 
Interim Director of the Pension Benefit Guaranty Corporation provided 
written comments on a draft of this report in a September 4, 2007 
letter. PBGC agreed with our findings and highlighted that PBGC will 
continue to monitor the effects of both the Bankruptcy Abuse Prevention 
and Consumer Protection Act of 2005 and the Pension Protection Act of 
2006 on PBGC's insurance programs. The Department of Justice and AOUSC 
did not provide comments.

We plan to provide copies of this report to the Secretaries of Labor, 
Justice, and the Treasury. We will also send copies to EBSA, the 
Department of Justice's U.S. Trustee Program, AOUSC, PBGC, and 
interested congressional offices. We will make copies available to 
others upon request. In addition, the report will be available at no 
charge on the GAO Web site at http://www.gao.gov. If you or your staff 
have any questions about this report, please contact me at (202) 512-
7215 or bovbjergb@gao.gov. Contact points for our Offices of 
Congressional Relations and Public Affairs may be found on the last 
page of this report.

Signed by:

Barbara D. Bovbjerg: 
Director, Education, Workforce, and Income Security Issues:

Congressional Requesters:

The Honorable Patrick J. Leahy:
Chairman: 
Committee on the Judiciary: 
United States Senate:

The Honorable Richard J. Durbin: 
The Honorable Russell D. Feingold: 
The Honorable Edward M. Kennedy: 
United States Senate:

The Honorable John Conyers, Jr.:
Chairman: 
Committee on the Judiciary: 
House of Representatives:

The Honorable Howard L. Berman: 
The Honorable William D. Delahunt: 
The Honorable Sheila Jackson-Lee:
The Honorable Zoe Lofgren: 
The Honorable Jerrold Nadler: 
The Honorable Robert C. Scott: 
The Honorable Chris Van Hollen, Jr.: 
The Honorable Debbie Wasserman Schultz:
The Honorable Melvin L. Watt: 
House of Representatives:

[End of section]

Appendix I Briefing Slides:

Employer-Sponsored Benefits: Many Factors Affect the Treatment of 
Pension and Health Benefits in Chapter 11 Bankruptcy:

Briefing for Senate and House Committees on the Judiciary:
August 2007:

Introduction:
* In recent years, considerable debate has centered on the use of the 
chapter 11 bankruptcy process by employers to reduce or eliminate 
employer-sponsored benefit obligations.
* In part, because of these concerns, Congress passed legislation that 
included provisions affecting how employers may treat benefits in 
chapter 11 bankruptcy:
- The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 
(BAPCPA) amended the Bankruptcy Code.
- The Pension Protection Act of 2006 (PPA) amended the Employee 
Retirement Income Security Act of 1974 (ERISA).

Key Questions:
* How, if at all, have recent legislative changes affected the 
treatment of pension and health benefits during chapter 11 bankruptcies?
* What is known about the extent to which businesses have modified 
employee or retiree pension and health benefits in chapter 11 
bankruptcies before and after changes in the bankruptcy law took effect?

Scope and Methodology:
To answer these questions, we:
* Reviewed the Bankruptcy Abuse Prevention and Consumer Protection Act 
of 2005 and other laws, including the Pension Protection Act of 2006, 
to identify how they affect the way that businesses may treat benefits 
in bankruptcy.
* Reviewed publicly available court documents of the 115 public 
companies identified by the Securities and Exchange Commission (SEC) as 
having filed for chapter 11 bankruptcy in the years before and after 
BAPCPA’s general enactment date—October 17, 2005, (76 companies before, 
39 after), including motions to change benefits, such as defined 
benefit (DB) plans, retiree health benefits, and those protected by 
collective bargaining agreements (CBA). We also reviewed whether 
employers sought approval to continue benefit programs. The scope of 
analysis was limited to public companies due to data limitations and is 
not generalizable to all companies in bankruptcy.
* Interviewed selected bankruptcy professionals, including researchers, 
judges, and attorneys who have represented various stakeholders 
including unions, retiree committees, debtor employers, and creditors, 
as well as officials who have represented the government and the public 
at the Pension Benefit Guaranty Corporation (PBGC), Administrative 
Office of the United States Courts, Department of Justice’s U.S. 
Trustee Program, Department of Labor’s Employee Benefits Security 
Administration (EBSA), Department of the Treasury, and SEC.
* Our work was performed between October 2006 and July 2007 in 
accordance with generally accepted government auditing standards.

Summary of Findings:
* The effects of recent legislation, including BAPCPA and PPA, on 
employers’ decisions to modify benefits are difficult to distinguish 
from the effects of other factors that lead to changes in benefits both 
within the bankruptcy process and outside of the bankruptcy process 
such as competitive pressures in certain industries.
* More is known about benefit changes subject to court approval—such as 
the termination of DB plans, and changes to retiree health 
benefits[Footnote 8] or benefits covered by collective bargaining 
agreements—than about other types of benefits such as defined 
contribution plans:
- Nearly one-half of the employers we reviewed with DB plans terminated 
them in bankruptcy.
- About 28 percent of employers we reviewed with retiree health 
obligations sought to modify these benefits.
- About 29 percent of employers we reviewed with collective bargaining 
agreements sought to reject these agreements.

Background: Examples of Employer-Sponsored Benefits:
* Employers generally can sponsor two types of pension plans:
- Defined benefit (DB) plans provide a pension benefit that is 
typically expressed as a monthly benefit based on a formula that 
generally combines salary and years of service to the company.
- Defined contribution (DC) plans, which include 401(k) plans, base 
retirement benefits on employee and/or employer contributions to and 
investment returns on individual accounts; participants may be able to 
direct the investment of the assets in their individual accounts.
* Employers may sponsor several types of health benefits, and the 
amounts they contribute can vary.
* Benefits may be offered as part of a collective bargaining agreement 
(CBA)—a written agreement or contract between an employer and a union 
or professional or trade association. Typically, labor and management 
negotiate the terms of employment, which include salaries, work rules, 
and health and pension benefits.

Background: Treatment of Benefits under the Bankruptcy Code and the 
Employee Retirement Income Security Act of 1974 (ERISA):

Bankruptcy Code:
Generally, employers will file for bankruptcy protection either under 
chapter 7 (liquidation) or chapter 11 (reorganization). Chapter 11 
provides an opportunity for a debtor to reorganize its financial 
obligations during which time the debtor may continue to conduct its 
business.

BAPCPA amended the Bankruptcy Code. Many of the changes focused on 
consumer bankruptcies, but it also contained provisions related to 
chapter 11.

ERISA:
Pension:
Sets certain standards for most voluntarily-established employer-
sponsored pension benefit plans in the private sector. Generally, 
employers may seek to terminate a pension plan, in the absence of a 
contractual agreement prohibiting it, if they meet certain 
requirements. Employers may not decrease participants’ DB benefits or 
increase benefits during bankruptcy if the plan is underfunded. PPA 
amended several ERISA provisions related to DB plan funding and 
termination, among other things.

Health:
While ERISA generally governs employee health benefit plans, these 
plans are subject to less extensive requirements than pension plans.
Pension assets that have been deposited into the trust are not part of 
the debtor's estate.

Bankruptcy Code:
BAPCPA specified that the definition of "property of the estate" 
excludes employee contributions to benefit plans, protecting 
contributions that were withheld but not yet deposited into the trust

ERISA:
Contributions made to a pension plan must be maintained for the 
exclusive benefit of participants and their beneficiaries.
* DB plans are typically insured by PBGC. An employer’s DB plan can be 
terminated in one of three ways:
- Standard termination—the employer wants to end its DB plan and the 
plan has sufficient funds to pay all benefits owed to participants.
- Distress termination—the employer is in financial distress and must 
prove it cannot remain in business unless the plan is terminated.
- Involuntary termination—PBGC can end the plan if it determines that 
the termination is needed to protect the interests of plan participants 
or the PBGC insurance program.

Defined contribution plans, e.g., 401(k) plans, are held in trust and 
not insured by PBGC.

Bankruptcy Code:
To modify or terminate retiree health benefits, the debtor must be able 
to show that:
* It negotiated in good faith with authorized representatives of the 
retirees.
* The retirees’ authorized representative refused the proposal without 
good cause. 
* The modification is necessary to permit the reorganization, assures 
that all parties are treated equitably, and is clearly favored by the 
balance of the equities.

BAPCPA amended the law to allow the court to reinstate retiree health 
benefits that were modified within 180 days prior to filing for 
bankruptcy.

ERISA:
Generally, employers can reserve the right to modify or terminate 
employee health benefit plans[Footnote 9]. Employers must provide 
employees with a minimum of 60 days advanced notice of its intent to 
terminate a plan.

Background (cont.) Treatment of Benefits Covered by a Collective 
Bargaining Agreement:

Bankruptcy Code:
To terminate or change a CBA, the debtor must be able to show that:
* Prior to filing the motion, the debtor made a proposal based on the 
most complete and reliable information and that the proposal treats all 
affected parties fairly and equitably.
* The employees’ authorized representative refused the proposal without 
good cause.
* The balance of the equities clearly favors rejection[Footnote 10].

ERISA:
National Labor Relations Act[Footnote 11] and ERISA:
A CBA may require that an employer establish or maintain pension and 
health benefits for employees and/or retirees. These agreements 
generally cannot be changed without negotiations and agreement by both 
parties. PBGC may, however, terminate a DB plan (involuntary 
termination) or undo a termination— restoring the plan to the employer 
as the trustee—regardless of whether the plan is part of a CBA.

Background (cont.) Other Key Changes in BAPCPA:
* Increased the amount of wages and benefits allowed as a priority claim
(those paid before other unsecured claims) from $4,925 per covered
employee earned within 90 days of the bankruptcy to $10,000 earned 
within 180 days prior to bankruptcy.
* Limited the amount of and approval procedures for key employee 
retention plans (KERP), including limiting certain retention or 
severance payments to executives to, for example, 10 times the average 
amount of similar payments to nonmanagement employees.
* Shortened the possible exclusivity period—where debtors have the 
exclusive right to file a reorganization plan—limiting the maximum 
exclusivity period to 18 months.

Background (cont.) Other Key Changes to ERISA: 
PPA amended ERISA and included several provisions specifically related 
to the treatment of pension plans in bankruptcy, including:
* Made permanent the $1,250 per participant premium, added by the 
Deficit Reduction Act of 2005, that an employer is required to pay to 
PBGC if its DB plan is terminated during chapter 11 bankruptcy. These 
employers are to pay this premium for 3 years after they emerge from 
bankruptcy.
* For terminated DB plans, PPA changed the date used to calculate the 
pension guarantee from the plan termination date to the bankruptcy 
petition filing date.
* In response to financial weakness of the commercial airline industry, 
allowed an alternative funding schedule for airlines’ DB plans. 
Airlines may amortize their unfunded liabilities over 17 years if 
benefit accruals are frozen or 10 years if benefit accruals are not 
frozen.
* Taxed benefits set aside to prefund certain deferred compensation 
plans for top executives—known as nonqualified plans—if, among other 
things, the employer is in bankruptcy.

Background (cont.) Role of Federal Agencies:
* The Department of Justice’s U.S. Trustee Program:
- Oversees the administration of bankruptcy cases and private trustees.
* The Department of Labor’s Employee Benefits Security Administration:
- Administers and enforces the fiduciary, reporting, disclosure, and 
other provisions of ERISA.
* Administrative Office of the United States Courts:
- Among other things, provides a wide range of administrative, legal, 
financial, management, program, and information technology services to 
the federal courts.
* Pension Benefit Guaranty Corporation:
- Insures certain DB pension plans and becomes statutory trustee of 
terminated plans when an employer has insufficient assets to pay the 
benefits that participants are owed.

Background (cont.) Information on All Chapter 11 Bankruptcies Filed:

Figure 1: Chapter 11 Bankruptcy Filings in the Year Before and the Year 
After BAPCPA’s Effective Date (October 17, 2005)

[See PDF for image] 

This is a bar graph containing two lines and two bars, with each line 
indicating the number of cases filed[Footnote 12].
 
Line one indicates the number of cases filed one year after BAPCPA 
(approximately 4740).
Line two indicates the number of cases filed one year before BAPCPA 
(approximately 6200).

Source: GAO Analysis of AOUSC data.

[End of Figure]

Effects of Recent Legislation: 

The Effects of Recent Legislation on Employers’ Decisions to Modify 
Benefits Are Difficult to Distinguish from Those of Other Factors
* Bankruptcy professionals generally agreed that BAPCPA will have a 
limited effect on employers’ decisions to modify benefits.
* Changes included in the PPA, such as the change in termination date 
and to funding rules, may affect employers’ decisions to maintain their 
DB plans.
* Several other factors such as market conditions and benefit 
obligations can also influence employers’ decisions in bankruptcy.

Many Factors Affect Employers’ Benefit Decisions:

Figure 2: Factors That May Affect Employers’ Decisions Regarding 
Benefits:

[See PDF for image] 

Source: GAO

[End of figure]

BAPCPA Had Few Provisions Affecting Treatment of Benefits:

Bankruptcy professionals identified two changes directly affecting 
benefits in chapter 11.
* Possible reinstatement of retiree health benefits modified within 180 
days prior to filing for bankruptcy:Some professionals stated this was 
a positive change; others stated that it addressed a nonexistent 
problem. Bankruptcy professionals said that they were not aware of any 
cases filed since BAPCPA involving such retiree benefit changes
* Increase in the amount of employee wages and benefits considered 
priority payments: While this change increased the potential amount of 
funds available to pay wages and benefits, professionals varied in 
their opinions of how this change would affect benefits. Some stated it 
may not be enough and would all be used on wages; others stated most 
participants would not reach the $10,000 limit, with the exception of 
highly paid employees.

Bankruptcy professionals identified some provisions not directly 
related to benefits that might affect how employers treat benefits and 
the amount of benefits that employees receive.
* Lease assumptions and utility payments: The tightening of the time 
for assuming leases and enhanced protection for utility payments could 
contribute to employers seeking savings elsewhere (including by 
modifying benefits).
* Key employee retention plans: Several professionals said that the 
restrictions on KERPs—which were meant, in part, to curb employers from 
awarding large executive bonuses while cutting employees’ benefits—may 
not be effective. For example, employers can try to circumvent the 
provision by proposing incentive plans rather than retention 
plans[Footnote 13]. Others felt that the restrictions were too 
stringent and could hinder successful reorganization.
* Exclusivity period: Shortening the time for filing a reorganization 
plan decreases the amount of time employers have to negotiate and make 
decisions, which could cause some employers to cut benefits without 
exploring alternatives. Employers are just now reaching the 18-month 
exclusivity limit, so the effect of the change is unknown.

PPA Had Some Provisions That May Affect the Treatment of DB Plans in 
Bankruptcy:
* Termination premium: While this premium may provide additional 
revenue to PBGC, some professionals stated the cost could cause more 
employers to liquidate their assets instead of reorganizing—generally 
eliminating any employee benefit obligations.
* Termination date: Some professionals stated that this could reduce an 
individual’s benefit because of the decrease in time used to calculate 
the guaranteed benefits. The change may also reduce an employer’s 
incentive to delay plan termination. For example, PBGC officials said 
that prior to PPA, employers could have delayed plan termination, 
increasing the amount for which PBGC was liable.
* Airline “stretch-out”: Some professionals stated this contributed to 
Delta Air Lines maintaining plans for its ground employees and 
Northwest Airlines maintaining its employee plans throughout the 
bankruptcy process. However, it is unknown whether either will be able 
to fund its plans by the end of the stretch-out period.

Professionals Cited Other Factors That May Influence Employers’ 
Treatment of Benefits:
* Competing pressures between maintaining benefits and long-term 
stability after reorganization.
* Employers with high employee benefit costs and in specific 
industries—such as airlines or automotive manufacturing—may find it 
difficult to compete given the potential cost of these 
obligations[Footnote 14].
* Lenders may affect employers’ treatment of benefits. For example, in 
at least one case, the lender would only provide financing if the DB 
plan were terminated. In another instance, an employer was able to 
retain its DB plan because it received additional financing.
* The composition and actions of the creditors or creditors’ committee 
may affect employers’ treatment of benefits.
* The cost and risk factors of providing benefits also influence 
employers’ decisions to modify these benefits outside the bankruptcy 
process[Footnote 15].

Extent of Benefit Modifications:
More Is Known about Benefit Changes Subject to Court Approval:

* More is known about the extent to which employers make benefit 
changes subject to court approval, including changes to:
- DB pensions,
- retiree health benefits, and
- benefits covered by a CBA.

More is Known about Benefit Changes Subject to Court Approval: DB Plans:

* Employers may consider terminating DB plans in bankruptcy because 
they are a large liability. However, while DB plan obligations topped 
several billion dollars for some employers, not all of them terminated 
their plans.
* Several employers froze their DB plans prior to filing for bankruptcy.
* In the year prior to and after BAPCPA, 20 of the 115 employers 
offered at least one DB plan:
- 9 of these terminated their plans in bankruptcy (4 post-BAPCPA cases);
- 3 of these have terminations pending (2 post-BAPCPA cases); and
- 8 of these emerged or are planning to emerge with their plans intact
(2 post-BAPCPA cases).

The employers that terminated pension plans during bankruptcy resulted 
in an estimated $1.4 billion liability to PBGC, as shown below.

Table 1: Liability of DB Pension Terminations and Number Affected, as 
of Plan Termination Date:

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Amcast Industrial Corporation;
Pension plan termination finalized date: 07/01/05;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 83.0;
Number of employees and retirees affected: 6,200;
Funded percentage (assets/benefits/liabilities): 53%.
  
Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Collins & Aikman Corporation;
Pension plan termination finalized date: 03/29/07;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 161.0;
Number of employees and retirees affected: 21,000;
Funded percentage (assets/benefits/liabilities): 42%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Delta Airlines Incorporated [a];
Pension plan termination finalized date: 09/02/06;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 944.6;
Number of employees and retirees affected: 13,294;
Funded percentage (assets/benefits/liabilities): 35%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Commerical Furniture Group (Falcon Products)[b];
Pension plan termination finalized date: 08/31/05;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 31.8;
Number of employees and retirees affected: 2,432;
Funded percentage (assets/benefits/liabilities): 48%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Huffy Corporation;
Pension plan termination finalized date: 01/14/05;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 80.0;
Number of employees and retirees affected: 3,700;
Funded percentage (assets/benefits/liabilities): 53%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Oneida LTD;
Pension plan termination finalized date: 05/01/06;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 48.3;
Number of employees and retirees affected: 1,900;
Funded percentage (assets/benefits/liabilities): 69%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Tom's Food Incorporated;
Pension plan termination finalized date: 12//06;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 42.5;
Number of employees and retirees affected: 3,000;
Funded percentage (assets/benefits/liabilities): 49%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Tropical Sportswear Int'l. Corporation;
Pension plan termination finalized date: 08/18/05;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 5.4;
Number of employees and retirees affected: 977;
Funded percentage (assets/benefits/liabilities): 55%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: USA Commerical Mortgage;
Pension plan termination finalized date: 01/12/07;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 0.6;
Number of employees and retirees affected: 30;
Funded percentage (assets/benefits/liabilities): 56%.

Plan sponsors filing for bankruptcy between October 17, 2004, and 
October 17, 2006: Total;
Unfunded guaranteed benefit liability (UGL)(dollars in millions): 
1,397.2;
Number of employees and retirees affected: 52,533.

[a] The termination of Delta's pilots plan represents the sixth largest 
claim in PBGS's history.

[b] PBGC disputed the termination of one of Falcon's plans, but lost 
the appeal. The termination of this plan which covers 72 employees and 
represents a UGL of about $974,000 is pending.

Source: PBGC

{End of table]

* Employees may still receive some DB benefits when a DB plan is 
terminated.
•	While covered participants receive a pension benefit from the 
PBGC, the level of guarantee varies[Footnote 16]. PBGC officials stated 
that most individuals receive their full benefit if the pension is 
terminated. However, the percentage receiving their full benefit when a 
plan terminates has decreased. This is, in part, attributable to the 
rise in terminations of airline pilots’ pension plans[Footnote 17].
* According to PBGC, it does not collect data on the percentage of 
benefits that individuals receive.
* Some employers that terminated their DB plans created “follow-on” DC 
plans or increased their contributions to an existing DC plan. For 
example, Delta Air Lines, which recently emerged from bankruptcy, 
increased its DC plan contribution.
* PBGC may file claims against the debtor for the unfunded benefit 
liability amount, among other things. PBGC officials stated that PBGC 
uses a portion of the recoveries on claims to pay non-guaranteed 
benefits to plan participants.


More Is Known about Benefit Changes Subject to Court Approval: Retiree 
Health Benefits:

* Several bankruptcy professionals stated that employers consider 
changing retiree health benefits, in part, because they often carry a 
high cost and are not usually prefunded.
* In the year prior to and after BAPCPA, 18 of the 115 employers 
reported retiree health benefit obligations.
* 5 of these (one post-BAPCPA case) sought to modify benefits. Several 
others changed their benefits prior to bankruptcy.

Table 2: Information on Employers That Filed to Modify Retiree Health 
Benefits, Year Prior to Filing for Bankruptcy (dollars in millions):

Employer[a]: Delphi Corporation;
Other postretirement benefit obligations (OPEB)[b]: $9,600;
Total employer liabilities: $19,934;

Employer[a]: Delta Airlines, Inc.;
Other postretirement benefit obligations (OPEB)[b]: $1,835;
Total employer liabilities: $26,789;

Employer[a]: Dana Corporation;
Other postretirement benefit obligations (OPEB)[b]: $1,543;
Total employer liabilities: $6,608;

Employer[a]: Northwest Airlines Corporation;
Other postretirement benefit obligations (OPEB)[b]: $926;
Total employer liabilities: $16,866;

Employer[a]: Tower Automotive, Inc.;
Other postretirement benefit obligations (OPEB)[b]: $173;
Total employer liabilities: $2,681;

[a] Allied Holdings, Inc. withdrew its motion to terminate certain 
nonunion retiree health benefits.

[b] Postemployment benefit obligations across companies are not 
comparable because companies have wide latitude in the assumptions they 
use to calculate these obligations. Other postretirement benefits may 
include medical, life, dental, vision, or other insurance benefits.

Source: Most recently available SEC 10-k filings prior to bankruptcy.

[End of table]

* Several bankruptcy professionals stated that modifications to retiree 
health benefits will have the biggest effect on individuals because 
these benefits generally are not insured by the government or funded 
and held in trust. Similarly, participants do not generally have 
statutory vesting rights.
* To help mitigate some of the potential negative effect on 
participants, some employers created a fund to help pay for certain 
retiree health benefits. For example, the Dana Corporation and Tower 
Automotive both set up voluntary employee beneficiary associations 
(VEBA)[Footnote 18] and funded these accounts for retirees whose health 
coverage was eliminated.
* Some federal provisions such as those requiring employers to offer 
continuation coverage, or the Health Coverage Tax Credit 
(HCTC)[Footnote 19], may also help to mitigate the potential negative 
effect.


More Is Known about Benefit Changes Subject to Court Approval: CBAs:
* The presence of a collective bargaining agreement adds another layer 
of complexity to how employers may treat benefits. Twenty-eight of the 
115 public employers reported having at least some employees who were 
represented by a union.
* Eight of the 28 employers that reported union representation sought 
to modify or reject their CBAs:
- Generally, employers and unions negotiate the changes to the CBA. 
Negotiations often include wage and benefit cuts.
- Many of the employers terminating their DB plans, and all 5 employers 
modifying retiree health benefits had CBAs.
* Changes to wages or benefit packages may be made to the CBA leading 
up to bankruptcy filing.

Table 3: Examples of Changes Made to Collective Bargaining Agreements

Employer: ATA Holdings Corporation;
Examples of CBA Changes: 20 per cent wage cut;
Examples of CBA Changes: Stopped some employer contributions to the DC 
plan.

Employer: Dana Corporation;
Examples of CBA Changes: terminated nonpension retiree benefits for 
autoworker and steelworker union employees and started a VEBA;
Examples of CBA Changes: Froze DB plan for employees with less than 20 
years of service and replaced it with a DC plan; 
Examples of CBA Changes: Changed wage structure.

Employer: Delphi Corporation[a];
Examples of CBA Changes: Froze DB pensions and started a 401(k) plan 
with a 7 percent employer contribution for Delphi employees;
Examples of CBA Changes: Terminated the postretirement benefits and 
provided an additional 1 percent employer contribution to the 401(k) 
plan for Delphi employees.

Employer: Delta Airlines, Inc.;
Examples of CBA Changes: Terminated pilots' DB plan.

Employer: Falcon Products, Inc.;
Examples of CBA Changes: Terminated DB plan (previously froze nonunion 
DB plan) and started a 401(k) with no match;
Examples of CBA Changes: Modified medical benefits;
Examples of CBA Changes: Modified work rules.

Employer: Northwest Airlines Corporation;
Examples of CBA Changes: 21 percent wage reduction for the flight 
attendants' employee union;
Examples of CBA Changes: Froze DB plan and replaced it with DC plan 
that included a 5 percent employer contribution;
Examples of CBA Changes: Machinists' union employees - replacement DB 
plan; 
Examples of CBA Changes: Increases to unions' health premiums ranging 
from 5 percent to 25 percent depending on the union affected.

Employer: Tower Automotive, Inc.;
Examples of CBA Changes: 4 percent wage reduction;
Examples of CBA Changes: Froze DB pensions and started a 401(k) with a 
2-5 percent employer contribution depending on the union affected.

[a] Delphi was spun off from General Motors (GM) in 1999, and the 
separation agreement included language that made GM contingently liable 
for postretirement benefits for Delphi employees who worked for GM 
before the separation. Some eligible Delphi employees retain their DB 
pension benefits. GM provides posretirement medical and employer paid 
retirement life insurance to some eligible Delphi employees.
Source: GAO review of court documents and news articles.

[End of table]

Limited Information Is Available on Benefit Changes Not Subject to 
Court Approval:
* In most of the cases we reviewed, employers received court 
approval—usually in first day orders—to continue employee benefits. 
While court approval allows employers to continue their benefit 
programs, it may not require them to do so.
* Employers may stop making matching contributions during bankruptcy or 
seek to terminate their DC plans, but absent a contractual agreement 
often do not file for approval from the court. Several of the employers 
halted their contributions (at least temporarily) prior to bankruptcy.
* Some professionals stated that employers may miss DC plan or health 
plan contribution payments or not remit pension contributions to the 
trusts in a timely manner, and this could lessen individuals’ benefits. 
According to EBSA officials, employee contributions not remitted to the 
trust are sometimes difficult to track.
* To the extent an employer fails to remit certain employee benefit 
plan contributions, such as DC plan or health plan contributions owed, 
EBSA may file a proof of claim and/or commence an adversary proceeding 
against a debtor.

Concluding Observations:
* Many stakeholders are involved in the decision to modify benefits, 
and striking a balance between maintaining employee benefit programs 
and successful reorganization can be difficult for all parties involved.
* While additional time may be needed to more fully understand how some 
aspects of BAPCPA and PPA affect benefits in specific cases, the full 
impact of both pieces of legislation on individuals’ benefits or 
federal agencies may never be known because employers’ decisions to 
modify benefits are part of a more complex process, and bankruptcy and 
pension laws are only part of this process.

[End of section]

Appendix II: Select Information on Bankruptcy Cases Reviewed:

(Dollars in millions): 
Post-BAPCPA cases:
Company name[A]: Sea Containers Ltd.; 
File date: 2006-10-15; 
Total assets: 2.4; 
Total liabilities: 1.9; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:[Empty].

Company name[A]: Delta Woodside Industries, Inc.; 
File date: 2006-10-13; 
Total assets: 38.2; 
Total liabilities: 2.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Anvil Holdings, Inc.; 
File date: 2006-10-02; 
Total assets: 108.3; 
Total liabilities: 231.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Global Power Equipment Group, Inc.; 
File date: 2006-09-28; 
Total assets: 366.9; 
Total liabilities: 204.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: The Rowe Companies; 
File date: 2006-09-18; 
Total assets: 134.2; 
Total liabilities: 86.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).
 
Company name[A]: Naturade, Inc.; 
File date: 2006-08-31; 
Total assets: 12.0; 
Total liabilities: 13.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Portrait Corporation of America, Inc.; 
File date: 2006-08-31; 
Total assets: 0.2; Total liabilities: 0.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Unicomp, Inc.; 
File date: 2006-08-25; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Fischer Imaging Corporation; 
File date: 2006-08-22; 
Total assets: 14.7; 
Total liabilities: 9.7; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Deja Foods, Inc.; 
File date: 2006-08-14; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Vesta Insurance Group, Inc.; 
File date: 2006-07-18; 
Total assets: 1,980.8; 
Total liabilities: 1,880.7;
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: OneTravel Holdings, Inc.; 
File date: 2006-07-07; 
Total assets: 84.3; 
Total liabilities: 76.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Image Innovations Holdings Inc.; 
File date: 2006-07-06; 
Total assets: 7.5; 
Total liabilities: 2.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Transcapital Financial Corporation; 
File date: 2006-06-19; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: America Capital Corporation; 
File date: 2006-06-19; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Werner Holding Co.; 
File date: 2006-06-12; 
Total assets: 283.6; 
Total liabilities: 463.7; 
DB Obligations at Bankruptcy[B,C,D]: 67.9; 
Other postretirement 
benefit obligations at bankruptcy[B,C]: 3.3; 
Collective bargaining agreement: Yes.

Company name[A]: Airnet Communications Corporation; 
File date: 2006-05-22; 
Total assets: 29.0; 
Total liabilities: 8.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Silicon Graphics, Inc.; 
File date: 2006-05-08; 
Total assets: 452.1; 
Total liabilities: 643.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: IDI Global, Inc.; 
File date: 2006-04-17; 
Total assets: 2.2; 
Total liabilities: 3.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: USA Commerical Mortgage Company; 
File date: 2006-04-13; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Prosoft Learning Corporation; 
File date: 2006-04-12; 
Total assets: 8.6; 
Total liabilities: 4.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Verilink Corporation; 
File date: 2006-04-09; 
Total assets: 42.3; 
Total liabilities: 26.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Trans-Industries, Inc.; 
File date: 2006-04-03; 
Total assets: 15.7; 
Total liabilities: 13.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: SeraCare Life Sciences, Inc.; 
File date: 2006-03-22; 
Total assets: 89.1; 
Total liabilities: 43.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Oneida Ltd.; 
File date: 2006-03-19; 
Total assets: 300.2; 
Total liabilities: 333.5; 
DB Obligations at Bankruptcy[B,C,D]: 79.6; 
Other postretirement benefit obligations at bankruptcy[B,C]: 2.5; 
Collective bargaining agreement: Yes.

Company name[A]: Televideo, Inc.; 
File date: 2006-03-14; 
Total assets: 9.1; 
Total liabilities: 14.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: The Plusfunds Group, Inc.; 
File date: 2006-03-06; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Dana Corporation; 
File date: 2006-03-03; 
Total assets: 9,019.0; 
Total liabilities: 6,608.0; 
DB Obligations at Bankruptcy[B,C,D]: 2,151.0; 
Other postretirement benefit obligations at bankruptcy[B,C]: 1,543.0; 
Collective bargaining agreement: Yes.

Company name[A]: Integrated Electrical Services, Inc.; 
File date: 2006-02-14; 
Total assets: 580.9; 
Total liabilities: 437.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Glycogenesys, Inc.; 
File date: 2006-02-02; 
Total assets: 3.1; 
Total liabilities: 1.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Large Scale Biology Corporation; 
File date: 2006-01-09; 
Total assets: 12.8; 
Total liabilities: 1.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Calpine Corporation; 
File date: 2005-12-20; 
Total assets: 27,216.1; 
Total liabilities: 22,235.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Desert Health Products, Inc.; 
File date: 2005-12-15; 
Total assets: 0.3; 
Total liabilities: 4.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Syndicated Food Service International, Inc.; 
File date: 2005-12-14; 
Total assets: 9.0; 
Total liabilities: 11.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: FLYi, Inc.; 
File date: 2005-11-07; 
Total assets: 677.7; 
Total liabilities: 510.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: 21st Century Technologies, Inc.; 
File date: 2005-11-01; 
Total assets: 13.5; 
Total liabilities: 2.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Mcleodusa Incorporated; 
File date: 2005-10-28; 
Total assets: 1,025.8; 
Total liabilities: 997.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Refco, Inc.; 
File date: 2005-10-17; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Pre-BAPCPA cases: 

Company name[A]: The Boyds Collection, Ltd.; 
File date: 2005-10-16; 
Total assets: 223.0; 
Total liabilities: 85.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Pliant Corporation; 
File date: 2006-01-03; 
Total assets: 820.9; 
Total liabilities: 1,455.8; 
DB Obligations at Bankruptcy[B,C,D]: 87.2; 
Other postretirement 
benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Gardenburger, Inc.; 
File date: 2005-10-14; 
Total assets: 19.9; 
Total liabilities: 101.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Dynamic Sciences International; 
File date: 2005-10-14; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Cyber Care, Inc.; 
File date: 2005-10-14; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Jacobson Resonance Enterprises, Inc.; 
File date: 2005-10-13; 
Total assets: 0.3; 
Total liabilities: 2.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Stassi Interaxx, Inc.; 
File date: 2005-10-13; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Delphi Corporation; 
File date: 2005-10-08; 
Total assets: 16,593.0; 
Total liabilities: 19,934.0; 
DB Obligations at Bankruptcy[B,C,D]: 12,872.0; 
Other postretirement benefit obligations at bankruptcy[B,C]: 9,605.0; 
Collective bargaining agreement: Yes.

Company name[A]: Epixtar Corp.; 
File date: 2005-10-06; 
Total assets: 18.0; 
Total liabilities: 18.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Tectonic Network, Inc.; 
File date: 2005-10-03; 
Total assets: 10.8; 
Total liabilities: 6.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: GB Holdings, Inc.; 
File date: 2005-09-29; 
Total assets: 217.0; 
Total liabilities: 181.7; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:Yes.

Company name[A]: Home Directors, Inc.; 
File date: 2005-09-28; 
Total assets: 8.7; 
Total liabilities: 2.7; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Thermoview Industries Inc.; 
File date: 2005-09-26; 
Total assets: 30.2; 
Total liabilities: 33.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Entergy New Orleans, Inc.; 
File date: 2005-09-23; 
Total assets: 662.8; 
Total liabilities: 488.5; 
DB Obligations at Bankruptcy[B,C,D]: 78.4; 
Other postretirement benefit obligations at bankruptcy[B,C]: 54.8; 
Collective bargaining agreement: Yes.

Company name[A]: Foamex International; 
File date: 2005-09-19; 
Total assets: 645.7; 
Total liabilities: 1,004.0; 
DB Obligations at Bankruptcy[B,C,D]: 143.9; 
Other postretirement benefit obligations at bankruptcy[B,C]: 1.2; 
Collective bargaining agreement: Yes.

Company name[A]: Northwest Airlines Corporation; 
File date: 2005-09-14; 
Total assets: 14,042.0; 
Total liabilities: 16,866.0; 
DB Obligations at Bankruptcy[B,C,D]: 9,245.0; 
Other postretirement benefit obligations at bankruptcy[B,C]: 926.0; 
Collective bargaining agreement: Yes.

Company name[A]: Delta Air Lines, Inc.; 
File date: 2005-09-14; 
Total assets: 21,801.0; 
Total liabilities: 27,597.0; 
DB Obligations at Bankruptcy[B,C,D]: 12,100.0; 
Other postretirement benefit obligations at bankruptcy[B,C]: 1,835.0; 
Collective bargaining agreement: Yes.

Company name[A]: Three-five Systems Inc.; 
File date: 2005-09-08; 
Total assets: 111.8; 
Total liabilities: 46.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: (NULL).

Company name[A]: Trans Max Technologies, Inc.; 
File date: 2005-09-08; 
Total assets: 1.8; 
Total liabilities: 2.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: (NULL).

Company name[A]: Arlington Hospitality, Inc.; 
File date: 2005-08-31; 
Total assets: 103.4; 
Total liabilities: 90.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: (NULL).

Company name[A]: Anchor Glass Container Corporation; 
File date: 2005-08-08; 
Total assets: 657.2; 
Total liabilities: 472.0; 
DB Obligations at Bankruptcy[B,C,D]: 55.8; 
Other postretirement benefit obligations at bankruptcy[B,C]: 53.8; 
Collective bargaining agreement: Yes.

Company name[A]: Teraforce Technology Corp.; 
File date: 2005-08-03; 
Total assets: 3.0; 
Total liabilities: 11.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: (NULL).

Company name[A]: Allied Holdings, Inc.; 
File date: 2005-07-31; 
Total assets: 421.5; 
Total liabilities: 463.1; 
DB Obligations at Bankruptcy[B,C,D]: 52.9; 
Other postretirement benefit obligations at bankruptcy[B,C]: 15.9; 
Collective bargaining agreement: Yes.

Company name[A]: Able Laboratories, Inc.; 
File date: 2005-07-18; 
Total assets: 104.3; 
Total liabilities: 8.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: The Project Group, Inc.; 
File date: 2005-07-15; 
Total assets: 0.4; 
Total liabilities: 1.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Frontier Insurance Group, Inc.; 
File date: 2005-07-05; 
Total assets: NA; 
Total liabilities: NA;
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Torch Offshore, Inc.; 
File date: 2005-01-07; 
Total assets: 169.9; 
Total liabilities: 99.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Aura Systems, Inc.; 
File date: 2005-06-24; 
Total assets: 17.8; 
Total liabilities: 20.7; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Heartland Technology, Inc.; 
File date: 2005-06-15; 
Total assets: 11.7; 
Total liabilities: 6.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Skyway Communications Holding; 
File date: 2005-06-14; 
Total assets: 7.0; 
Total liabilities: 4.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Proxim Corporation; 
File date: 2005-06-11; 
Total assets: 63.6; 
Total liabilities: 108.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Universal Automotive Industries, Inc.; 
File date: 2005-05-26; 
Total assets: 32.6; 
Total liabilities: 30.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Greentech USA, Inc.; 
File date: 2005-05-24; 
Total assets: 3.4; 
Total liabilities: 2.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Western Water Company; 
File date: 2005-05-24; 
Total assets: 16.9; 
Total liabilities: 9.9; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Global Environmental Energy Co.; 
File date: 2005-05-19; 
Total assets: 35.7; 
Total liabilities: 35.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Collins & Aikman Corporation; 
File date: 2005-05-17; 
Total assets: 3,191.2; 
Total liabilities: 2,750.9; 
DB Obligations at Bankruptcy[B,C,D]: 444.6; 
Other postretirement benefit obligations at bankruptcy[B,C]: 100.2; 
Collective bargaining agreement: Yes.

Company name[A]: Certified HR Services Company; 
File date: 2005-05-12; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: AAIPHARMA Inc.; 
File date: 2005-05-10; 
Total assets: 339.1; 
Total liabilities: 451.0;
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Natural Golf Corporation; 
File date: 2005-05-10; 
Total assets: 1.2; 
Total liabilities: 2.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Composite Technology Corporation; 
File date: 2005-05-05; 
Total assets: 18.1; 
Total liabilities: 12.5; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Composite Solutions, Inc.; 
File date: 2005-05-05; 
Total assets: 914.1; 
Total liabilities: 900.5;
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Summit National Group, Inc.; 
File date: 2005-04-21; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Eagle Picher Holdings, Inc.; 
File date: 2005-04-11; 
Total assets: 598.8; 
Total liabilities: 740.8; 
DB Obligations at Bankruptcy[B,C,D]: 259.8; 
Other postretirement benefit obligations at bankruptcy[B,C]: 9.3; 
Collective bargaining agreement: Yes.

Company name[A]: Southern Investors Service Company; 
File date: 2005-04-08; 
Total assets: 2.4; 
Total liabilities: 8.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Tom's Foods Inc.; 
File date: 2005-04-06; 
Total assets: 101.3; 
Total liabilities: 108.4; 
DB Obligations at Bankruptcy[B,C,D]: 57.1; 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Claremont Technologies Corporation; 
File date: 2005-03-25; 
Total assets: 0.0; 
Total liabilities: 0.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Intercell International Corporation; 
File date: 2005-03-16; 
Total assets: 0.3; 
Total liabilities: 0.3;
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: V-one Corporation; 
File date: 2005-03-11; 
Total assets: 0.9; 
Total liabilities: 2.7; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: WHX Corporation; 
File date: 2005-03-07; 
Total assets: 311.9; 
Total liabilities: 408.8; 
DB Obligations at Bankruptcy[B,C,D]: 410.2; 
Other postretirement benefit obligations at bankruptcy[B,C]: 8.6; 
Collective bargaining agreement: Yes.

Company name[A]: Skin Nuvo International, LLC; 
File date: 2005-03-07; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: HealthEssentials Solutions, Inc.; 
File date: 2005-03-01; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Veritec Inc.; 
File date: 2005-02-28; 
Total assets: 1.7; 
Total liabilities: 3.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Las Americas Broadband Inc.; 
File date: 2005-02-28; 
Total assets: 0.8; 
Total liabilities: 3.8; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Terra Telecommunications Corp; 
File date: 2005-02-22; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: WINN-DIXIE Stores, Inc.; 
File date: 2005-02-21; 
Total assets: 2,618.9; 
Total liabilities: 1,701.5; 
DB Obligations at Bankruptcy[B,C,D]: 68.8; 
Other postretirement benefit obligations at bankruptcy[B,C]: 17.0; 
Collective bargaining agreement:(NULL).

Company name[A]: Syratech Corporation; 
File date: 2005-02-16; 
Total assets: 118.6; Total liabilities: 174.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Tower Automotive, Inc.; 
File date: 2005-02-02; 
Total assets: 2,560.8; 
Total liabilities: 2,681.7; 
DB Obligations at Bankruptcy[B,C,D]: 280.7; 
Other postretirement benefit obligations at bankruptcy[B,C]: 173.0; 
Collective bargaining agreement: Yes.

Company name[A]: Falcon Products, Inc.; 
File date: 2005-01-31; 
Total assets: 266.5; 
Total liabilities: 228.0; 
DB Obligations at Bankruptcy[B,C,D]: 41.7; 
Other postretirement 
benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: American Business Financial Services, Inc.; 
File date: 2005-01-21; 
Total assets: 1,042.9; 
Total liabilities: 1,031.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: First Virtual Communications, Inc.; 
File date: 2005-01-20; 
Total assets: 6.8; 
Total liabilities: 8.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: SGD Holdings, LTD; 
File date: 2005-01-20; 
Total assets: 6.8; 
Total liabilities: 4.4; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: American Banknote Corporation; 
File date: 2005-01-19; 
Total assets: 184.3; 
Total liabilities: 178.0; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]: 1.5;
Collective bargaining agreement:(NULL).

Company name[A]: Friedman's Inc.; 
File date: 2005-01-14; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Ultimate Electronics, Inc.; 
File date: 2005-01-11; 
Total assets: 336.2; 
Total liabilities: 137.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Acceptance Insurance Companies, Inc.; 
File date: 2005-01-07; 
Total assets: 279.3; 
Total liabilities: 376.7; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Trico Marine Service, Inc.; 
File date: 2004-12-21; 
Total assets: 585.2; 
Total liabilities: 443.2; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: The MIIX Group, Inc.; 
File date: 2004-12-20; 
Total assets: 1,278.6; 
Total liabilities: 1,557.2; 
DB Obligations at Bankruptcy[B,C,D]: 13.6; 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).
 
Company name[A]: Tropical Sportswear Int'l Corporation; 
File date: 2004-12-16; 
Total assets: 214.3; 
Total liabilities: 191.5; 
DB Obligations at Bankruptcy[B,C,D]: 10.7; 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Yukos Oil Company; 
File date: 2004-12-14; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Applied Extrusion Technologies, Inc.; 
File date: 2004-12-01; 
Total assets: 407.5; 
Total liabilities: 413.3; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Amcast Industrial Corporation; 
File date: 2004-11-30; 
Total assets: 230.3; 
Total liabilities: 272.3; 
DB Obligations at Bankruptcy[B,C,D]: 114.4; 
Other postretirement benefit obligations at bankruptcy[B,C]: 0.6; 
Collective bargaining agreement: Yes.

Company name[A]: Trump Hotel & Casino Resorts, Inc.; 
File date: 2004-11-21; 
Total assets: 1,396.5; 
Total liabilities: 1,482.9; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Shreveport Capital Corporation; 
File date: 2004-10-30; 
Total assets: 141.7; 
Total liabilities: 164.1; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: eB2B Commerce Inc.; 
File date: 2004-10-27; 
Total assets: NA; 
Total liabilities: NA; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: ATA Holdings Corporation; 
File date: 2004-10-26; 
Total assets: 651.1; 
Total liabilities: 1,571.6; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement: Yes.

Company name[A]: Epicus Communications Group, Inc.; 
File date: 2004-10-25; 
Total assets: 7.6; 
Total liabilities: 16.9; 
DB Obligations at Bankruptcy[B,C,D]:(NULL); 
Other postretirement benefit obligations at bankruptcy[B,C]:(NULL); 
Collective bargaining agreement:(NULL).

Company name[A]: Huffy Corporation; 
File date: 2004-10-20; 
Total assets: 293.0; 
Total liabilities: 220.3; 
DB Obligations at Bankruptcy[B,C,D]: 110.4; 
Other postretirement benefit obligations at bankruptcy[B,C]: 4.2; 
Collective bargaining agreement: Yes.

NA = Not Available:

[A] Company data may include information on all of its operating 
subsidiaries.

[B] Benefit obligations may not be comparable across companies, because 
companies may have used different assumptions in calculating these 
obligations.

[C] Blank cells means that no DB benefit obligations or OPEBs for non-
executives were reported.

[D] Some of the DB plans may have been terminated prior to bankruptcy.

Source: GAO review of SEC 10-k filing data for the most recent year 
available prior to employer's bankruptcy filing and PACER documents.

[End of table]

[End of section]

Appendix III: Comments from the Pension Benefit Guaranty Corporation:

PBGC:
Protecting America's Pensions:
Pension Benefit Guaranty Corporation: 
1200 K Street, N.W.,: 
Washington, D.C. 20005-4026:

Office of the Director:

SEP 04 2007:

Barbara D. Bovbjerg, Director:
Education, Workforce, and Income Security Issues: 
U.S. Government Accountability Office:
Washington, D.C. 20548:

Dear Ms. Bovbjerg:

Thank you for the opportunity to comment on the draft version of your 
report entitled, "Employer-Sponsored Benefits: Many Factors Affect the 
Treatment of Pension and Health Benefits in Chapter 11 Bankruptcy."

We especially appreciate your work in reviewing the factors that may 
impact decisions to seek to terminate a defined benefit pension plan or 
modify its provisions during the bankruptcy process. Your efforts are 
particularly noteworthy given the complexity of the subject.
PBGC is monitoring the effects of both Bankruptcy Abuse Prevention and 
Consumer Protection Act and Pension Protection Act of 2006 on PBGC's 
insurance programs. To help protect those programs, PBGC actively 
monitors the financial health of plan sponsors that are in or facing 
bankruptcy as well as related corporate transactions.

We look forward to continuing to work with your office in highlighting 
matters which may impact the defined benefit pension plans which PBGC 
insures.

Signed by:

Charles E. F. Millard:
Interim Director:

[End of section]

Appendix IV: GAO Contacts and Staff Acknowledgments:

GAO Contacts:

Barbara D. Bovbjerg, Director (202) 512-7215:

Staff Acknowledgments:

The following staff members made major contributions to this report: 
David R. Lehrer, Assistant Director; Nyree M. Ryder, Analyst-in-Charge; 
Mee-Yong Rao; John J. Larsen; Susannah L. Compton; Gloria Hernandez-
Saunders; Walter K. Vance; and Craig H. Winslow.

[End of section]

FOOTNOTES

[1] In this report, we refer to companies that filed for chapter 11 
protection under the Bankruptcy Code as employers. In the legislation, 
these employers are referred to as debtors, and if the management of 
such employers continue to operate the business during the pendency of 
the chapter 11 case, they are also referred to as debtors in 
possession.

[2] DB plans generally provide a guaranteed pension based on salary and 
years of service, and are often provided as part of a collective 
bargaining agreement (CBA)--a written agreement or contract between an 
employer and a union that includes provisions on conditions of 
employment and the procedures to be used in settling disputes during 
the term of the contract. Employers may also offer a defined 
contribution (DC) plan in which the employer, participants, or both 
make contributions to an individual account, and the benefits are paid 
based on the contributions to and investment returns on this account.

[3] For detailed information on the 115 employers we reviewed, see 
appendix II.

[4] While we refer to "health benefits," which are a focus of this 
report, the Bankruptcy Code requires court approval for modification of 
retiree medical, surgical, or hospital care benefits, and any retiree 
benefits in the event of sickness, accident, disability, or death. 11 
U.S.C. § 1114(a) and (e).

[5] 29 U.S.C. § 141 et seq.

[6] 45 U.S.C. § 151 et seq.

[7] The benefits that employers offer are not mutually exclusive. For 
example, one employer may offer (and seek to change) pension benefits, 
retiree health benefits, and benefits covered under a collective 
bargaining agreement. In total, 15 employers sought to change at least 
some of their benefits. 

[8] While we refer to "health benefits," which are a focus of this 
report, the Bankruptcy Code requires court approval for modification of 
retiree medical, surgical, or hospital care benefits, and any retiree 
benefits in the event of sickness, accident, disability, or death. 11 
U.S.C. § 1114(a) and (e).

[9] In the event of the elimination or substantial elimination of 
health benefits during bankruptcy, covered employees and retirees must 
be offered continuation coverage at their own expense. 29 U.S.C. §§ 
1161-1167. If an employee's or retiree's spouse has access to an 
employee health plan, coverage may also be available through it.

[10] Courts may consider various criteria in evaluating the balance of 
equities, including the likelihood of an employer’s liquidating if the 
CBA is not rejected or other creditors’ claims.

[11]The National Labor Relations Act is the primary law governing 
relations between unions and employers in the private sector. In the 
airline and railroad industries, labor relations are regulated by the 
Railway Labor Act (RLA). Under the RLA, CBAs do not expire but, rather, 
become amendable.

[12]This includes the 115 companies that we reviewed.

[13]A recent case concerning Dana Corporation dealt with KERPs. The 
Bankruptcy Court for the Southern District of New York ruled that the 
original proposed incentive plan was a “pay to stay” retention plan 
subject to the restrictions established by BAPCPA and not a “produce 
value for pay” plan, i.e., a true incentive plan. In re: Dana Corp., 
351 B.R. 96 (Bankr. S.D.N.Y. 2006 ). Dana modified its plan by 
incorporating more stringent performance targets, and the court 
approved it. In re: Dana Corp., 358 B.R. 567 (Bankr. S.D.N.Y. 2006 ).

[14]See GAO, Commercial Aviation: Bankruptcy and Pension Problems Are 
Symptoms of Underlying Structural Issues, GAO-05-945 (Washington, D.C.: 
Sept. 6, 2005).

[15]See GAO, Employer-Sponsored Health and Retirement Benefits: Efforts 
to Control Employer Costs and the Implications for Workers, GAO-07-355 
(Washington, D.C.: Mar. 30, 2007).

[16]The maximum amount that PBGC guarantees is set each year under 
provisions of ERISA. This guarantee amount may be higher or lower, in 
part depending on the age of the individual receiving benefits.

[17]Pilots typically have higher pension accruals and retire at an 
earlier age. These two factors contribute to a potential reduction in 
their pension benefits when they are derived from PBGC.

[19]VEBA’s are trusts that an employer may establish to fund retiree 
health benefits such as medical, dental, disability, severance, and 
life insurance. According to Treasury, VEBA assets are not available to 
creditors in bankruptcy.

[19]The HCTC is available to individuals age 55 or over who are 
currently being paid PBGC benefits or received a lump sum from PBGC 
after August 5, 2002, among other groups. The tax credit can be used to 
pay 65 percent of the cost of qualified health insurance.

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Washington, D.C. 20548: