Jim,

Here’s a case where retiree health care and life insurance benefits for thousands of current and former workers may be sacrificed in order to keep an auto parts supplier in business.

The union says that Visteon is petitioning for the termination of benefits at the same time that it’s proposing millions of dollars in incentives for top executives.

Your recent observations regarding the expendability of geezers is right on.

Best regards,
CIGA Black Swan

Visteon judge to rule on cutting retiree benefits
Randall Chase, Ap Business Writer

WILMINGTON, Del. – A Delaware bankruptcy judge is weighing whether auto parts supplier Visteon Corp. can terminate retiree health care and life insurance benefits for thousands of current and former workers.

After a two-day hearing, Judge Christopher Sontchi told attorneys Friday he would consider the evidence and arguments. He gave no indication when he would rule.

"I feel that the record is sufficiently complex and the law is sufficiently complex to require the court to thoroughly review the record," said Sontchi, whose ruling could affect some 6,600 retirees and their families, and about 1,000 future retirees.

Visteon has argued that the retiree benefits are one of its largest liabilities and pose a significant obstacle to a successful reorganization. The company claims the retiree health and life insurance subsidies, also known as "other post-employment benefits," constitute a liability of about $310 million and projected cash costs of $31 million this year alone.

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