CLIENT ALERT: Private Equity Fund Acquisitions of Portfolio Companies with Pension Liabilities – the Sun Capital Decision
April 27, 2016 – The attached Alert examines steps private equity firms can take to minimize potential pension liabilities from portfolio companies after Sun Capital. In the Sun Capital case, two separate but affiliated private equity funds were held liable for the unfunded pension liabilities of a bankrupt portfolio company, despite having taken specific steps to avoid this result.
Related Practices
Our Executive Compensation & Employee Benefits Practice represents companies and individuals in virtually all aspects of the employment relationship and in a wide variety of industries. We provide strategic advice and offer creative, commercial solutions designed to achieve favorable outcomes for our clients.
Our lawyers represent a wide range of clients on the ERISA regulatory issues that are associated with investments by U.S. pension plans. These clients may be accepting investments from ERISA investors or engaging in other transactions with ERISA counterparties, or have fiduciary responsibility for managing ERISA plan assets.
