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Bankrupt Auto Parts Supplier Requests Termination of Retiree Benefits

Posted By admin || 19-Aug-2009

According to an article in the Star-Telegram , auto parts supplier Visteon Corp. is asking a bankruptcy judge for permission to terminate the company's retiree health care and life insurance benefits. It approved by the bankruptcy court, approximately 8,000 current and former Visteon workers could find themselves without healthcare and life insurance.

The article said:

"At a hearing Thursday, Visteon representatives said the retiree benefits are one of the company's largest liabilities and a significant obstacle to a successful reorganization."

This bankruptcy case is another reminder to workers that corporations are taking full advantage of the bankruptcy laws even if it means harming workers who earned every last one of the benefits they enjoy. But many of these same companies and their supporters will discourage ordinary workers from seeking bankruptcy protection from creditors even when the debt they are burdened with clearly cannot be paid under their current circumstances. Visteon will likely survive their bankruptcy and come out on the other end a healthier company. What about those workers who will lose the benefits they counted on? Many of them may find it difficult or too costly to replace their health coverage and may end up burdened with medical debt if they are faced with an illness. And many others may try to pay for their medical costs but find that the entire ordeal sinks them financially. Workers and those who have suffered job losses need to seriously consider all of the options to save themselves financially and that includes considering bankruptcy.

Categories: Bankruptcy, Economy
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