As I recall, during the late 1980's, corporate raiders used to buy-out
companies and reap gigantic windfalls from overfunded pension plans by
terminating the pension plans and replacing them with annuities to
satisfy the minimum obligations.

Two questions: 1) Is it possible to do that today and 2) are those
prepaid pension assets (which would be the difference between pension
plan assets and the minimum pension liability) available to help
satisfy the claims of creditors?

A few weblinks as referrences would be helpful

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Clarification of Question by irishkevin-ga on 03 Oct 2005 13:03 PDT

On both questions, I want to know the answer that is consistent with
US bankruptcy law.

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Clarification of Question by irishkevin-ga on 03 Oct 2005 13:03 PDT

On both questions, I want answers that are consistent with US bankruptcy law.

When you say "Is it possible to do that today" you should keep in mind
that the US bankruptcy laws will be changing dramatically on October
17, 2005. What you learn here today, based on how the laws are
currently written as of this post, might not be applicable then.

tutuzdad-ga

If the revision to the bankruptcy law is expected to change the answer
to the questions, then please do keep that in mind in your response.