Bankruptcy Tutor
October 12, 2004
PENSION BENEFIT AND BANKRUPTCY REFORM
SOUTHERN ILLINOIS -- A joint effort at both the state and federal levels to revamp bankruptcy laws is moving forward, three Southern Illinois lawmakers say.
U.S. Reps. Jerry Costello, D-Belleville, and John Shimkus, R-Collinsville, and state Rep. John Bradley, D-Marion, are working toward the same goal -- changing bankruptcy laws so health and pension benefits have a higher priority when companies go bankrupt.
The action by Costello, Shimkus and Bradley was prompted by the ongoing situation involving more than 3,100 coal miners and retirees who lost health care benefits after Horizon Natural Resources filed for bankruptcy. Lawyers for Horizon argued successfully during bankruptcy hearings last July and August that -- as part of its bankruptcy reorganization plan -- Horizon should not be held responsible for health care benefits for the union miners and retirees who had previously worked for Zeigler Coal and Old Ben Coal.
BY JIM MUIR
THE SOUTHERN
PENSION BENEFIT AND BANKRUPTCY REFORM
SOUTHERN ILLINOIS -- A joint effort at both the state and federal levels to revamp bankruptcy laws is moving forward, three Southern Illinois lawmakers say.
U.S. Reps. Jerry Costello, D-Belleville, and John Shimkus, R-Collinsville, and state Rep. John Bradley, D-Marion, are working toward the same goal -- changing bankruptcy laws so health and pension benefits have a higher priority when companies go bankrupt.
The action by Costello, Shimkus and Bradley was prompted by the ongoing situation involving more than 3,100 coal miners and retirees who lost health care benefits after Horizon Natural Resources filed for bankruptcy. Lawyers for Horizon argued successfully during bankruptcy hearings last July and August that -- as part of its bankruptcy reorganization plan -- Horizon should not be held responsible for health care benefits for the union miners and retirees who had previously worked for Zeigler Coal and Old Ben Coal.
BY JIM MUIR
THE SOUTHERN
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