• Investment Funds May Face Additional ERISA Exposure Following New England Teamsters Decision
  • August 14, 2013 | Authors: Timothy P. Brechtel; B. Trevor Wilson
  • Law Firms: Jones Walker LLP - New Orleans Office ; Jones Walker LLP - Baton Rouge Office
  • Private equity funds often invest in troubled companies, planning to turn them around and sell them at a profit. Troubled companies sometimes have underfunded pension liabilities, which can be significant, particularly in the case of multiemployer (union) pension plans. The recent case of Sun Capital Partners III LP v. New England Teamsters & Trucking Indus. Pension Fund (1st Cir., No. 12-2312, July 24, 2013) highlights the need to carefully and strategically plan whether and how to acquire companies with pension liabilities.