- 11 U.S.C.
In re Tower Auto. Inc.
May
19
2006
Ruling
Settlements were approved since debtors were entitled to negotiate modification of retirees'benefits and retirees were not similarly situated to unsecured creditors.
Procedural posture
Pursuant to 11 U.S.C. § 1114, bankruptcy debtors in possession proposed to modify the benefits of retirees who previously retired from the debtors'employment, but the committee of unsecured creditors asserted that settlements between the debtors, the retirees, and unions provided disparate treatment and constituted a sub rosa plan of reorganization. The debtors moved for approval of the settlements.
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Court
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