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Allan E. Reznick, a partner at Kramer Levin Naftalis & Frankel, and A. Owen Glist, an associate at the firm, write that international considerations trouble domestic bankruptcies when foreign entities are part of the debtor's "controlled group"--defined by U.S. pension law as all entities having 80 percent common ownership. Controlled-group members are liable to the Pension Benefit Guaranty Corp. for benefit shortfalls. Will the PBGC be able to enforce liability against non-U.S.-controlled group members?
February 17, 2006 at 12:00 AM
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