Bankruptcy Knoxville

A few days ago we made a post about pension fund collapses and the government stepping in to guarantee those pension funds. Not too long ago the Delphi pension plan was seized and the PBGC made a deal to secure the pension plans for Delphi workers. But according to two workers at the Delphi Salaried Retirees Association say the Treasury pressured the PBGC to accept an unfair pension deal. The Wall Street Journal says:

The U.S. Treasury Department and Auto Task Force pressured the Pension Benefit Guaranty Corp. to accept an unfair pension deal, two representatives for Delphi Corp. (DPH) salaried employees will tell House lawmakers on Wednesday.

Bruce Gump and Chuck Cunningham, representatives of Delphi Salaried Retirees Association, say Treasury or PBGC should have devised a better plan to obtain more value from the Delphi liens valued at nearly $3.4 billion.