Edit post

Edit your reply below.

Post Body
Enter your post below.
The primary purpose of Chapter 11 is to allow a failed business to restructure itself so that it has a reasonable probability of succeeding.  If the probability is low, Chapter 7 comes into play, and the assets of the bankrupt are liquidated. If the employees were enrolled in a qualified legacy pension plan, that was covered by the Pension Benefit Guaranty Corporation, their vested pension rights are transferred to the PBGC. The key term is vested!  If the employee was participating in a  401k, 401m, or a cash balance plan, he would get the market value of the plan at the point of separation. In the long run, if the 401 or cash balance plans are managed properly, the outcome can be much better for everyone. The primary objective of a business organization is to preserve the entity.  If this objective is not met, everything goes in the toilet. Frequently, to emerge from Chapter 11 with a reasonable probability of success, the organization needs to shed employees.  It is unfortunate, especially for those losing their jobs, but it is a fact of business survival. The theory is that shedding some employees is better than shedding all of them. Contrary to what many Americans appear to believe, a business does not exist to provide employment. It's purposes are to achieve a variety of goals for its key stakeholders, i.e. shareholders, customers, employees, creditors, regulators, etc.  At the end of the day the primary purpose of a business is to sell goods and/or services at prices that will cover their costs and provide a reasonable return to the owners.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag