Practice Areas & Industries: Jones Day

Practice/Industry Group Overview

Pension, retiree medical, ERISA fiduciary liability, and other employee benefits issues have been central to many of the bankruptcy restructurings and liquidations that have changed the face of certain industries in recent years. Lawyers in Jones Day's Employee Benefits & Executive Compensation Practice have extensive experience in handling these difficult issues.

We have contributed significantly to the successful resolution of numerous cases in which Jones Day acted as counsel to a chapter 11 debtor. Our experience in bankruptcy matters is also invaluable when we advise prospective purchasers of businesses owned by chapter 11 debtors.

Handling the ERISA and other employee benefits aspects of complex bankruptcy matters requires a multidisciplinary approach for which Jones Day is ideally suited. Our experience in of employee benefits and executive compensation mesh with that of our industry-leading Business Restructuring & Reorganization Practice, as well as our Labor & Employment and other practices. In recent years, we have handled diverse creditor, debtor, and other third-party representations in bankruptcies within the steel, automotive supply and aftermarket, energy, textile, airline, and transportation industries.

Key to many recent bankruptcy reorganizations have been pension liability issues involving the Pension Benefit Guaranty Corporation. Jones Day's benefits lawyers are veterans of difficult negotiations with the PBGC over PBGC claims, priorities, and recovery rights in bankruptcies, terminations of pension plans in bankruptcies (by the PBGC or distress terminations initiated by the debtor), and PBGC resistance to forward-going arrangements that the PBGC regards as impermissible follow-on plans. In this difficult area of law and policy, our experience is substantial.

Also critical in many cases are retiree medical and other welfare benefits and collective bargaining obligations to provide pension, medical, and other employee benefits. Modification of these obligations to attain a sustainable cost structure is often essential to a successful reorganization. Our lawyers have considerable experience in negotiating resolutions of these issues with unions, retiree committees, and other creditor groups under the rules of the Bankruptcy Code.

Contact(s)

John R. Cornell
New York
Tel: 1.212.326.3939