NewRetirement Retirement News Digest : The Cram-Down Decade
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NewRetirement Retirement News Digest

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The Cram-Down Decade

A "Cram-Down" deal, occurs when a corporate entity forces its workers, shareholders, or the taxpayers in general to accept something less valuable than what they were owed, after the workers (in most cases) met their obligations to the company, and the company didn't return the favor. Many companies seem to be giving junk bonds to their pensioners and workers in lieu of the money they are owed due to chronically underfunded pension plans. In plenty of cases they don't even do that much, defaulting on the retirement plans and letting the debt-ridden PBGC (Pension Benefits Guarantee Corporation) handle the overflow. 

http://select.nytimes.com/gst/abstract.html?res=F40717FA3A5D0C7B8EDDAC0894DD404482

Published Sunday, May 22, 2005 11:31 AM by jberman
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