Three Anchor Glass Container Corp. retirees have asked a bankruptcy court to appoint an official committee to look after their interests in the company“s Chapter 11 case.
Anchor has not paid for the…
Three Anchor Glass Container Corp. retirees have asked a bankruptcy court to appoint an official committee to look after their interests in the company“s Chapter 11 case. Anchor has not paid for the retiree benefits of Robert Simmons, Edna Rusnak and Hiram Miller since 1 October 2005, the three said in a court filing on 12 November 2005. In the filing, details of which emerged on 16 November 2005, the retirees claimed that the company had no right to refuse to pay the retirees“ benefits, and asked for an official committee to be appointed to represent retirees during the bankruptcy proceedings. Official committee status allows a group to seek reimbursement from the company for the expenses of its professionals, rather than having to bear the cost of its attorneys“ and advisers“ fees. Official committee status also gives a group notice and an opportunity to be heard on every issue in the case. Simmons was formerly vice president of industrial relations with the company“s Glass Containers Corp. unit, Rusnak was administrator of employee benefits and Miller was controller of the unit. On retirement, the three, and their spouses, qualified to receive benefits, including medical coverage for the rest of their life at no cost to them. The three said the company notified them in late July 2005 that it would cease paying the benefits as of 1 October 2005. According to the filing, about 25 other retired Anchor Glass Containers workers also have fully vested retiree benefits that the company is obliged to pay, but is refusing to do so. In addition, the three retirees said that Anchor Glass may have as many as 700 other retired employees or covered spouses eligible for retiree benefits. Under bankruptcy law, a court may appoint a committee to represent retirees not covered by a collective bargaining agreement if a debtor company seeks to modify or not pay retiree benefits. The US Bankruptcy Court in Tampa scheduled a 23 November 2005 hearing on the request. Anchor Glass filed for Chapter 11 protection August 8, listing assets of USD 661.5 million and debts of USD 666.5 million.