The U.S. Bankruptcy Court approved Alpha Natural Resources’ official committee of retired employees’ motion for creation of a VEBA, authorizing the possession of funds and authorizing the assignment/transfer of rights.
As previously reported, “As soon as practicable following the entry of this Stipulation and Order, the Retiree Committee shall: (a) establish a voluntary employees’ beneficiary association (the ‘VEBA’) within the meaning of section 501(c)(9) of the U.S. Internal Revenue Code of 1986, as amended (the ‘IRC’); and (b) provide the Debtors, NewCo and/or the First Lien Lenders with written notice that (i) the Retiree Committee has established the VEBA and (ii) the VEBA can accept contributions made as instructed therein. Nothing in this Stipulation and Order is intended to mandate or provide for the type, nature or duration of benefits or payments that may be offered or provided by the VEBA, and all decisions with respect thereto shall be within the sole discretion of the trustees of the VEBA (collectively, the ‘VEBA Trustees’).”
Court-filed documents continue, “For the avoidance of doubt, the Retiree Committee shall be responsible for electing or appointing the VEBA Trustees, and the Debtors shall have no obligations regarding the establishment or administration of the VEBA. The First Lien Agent, at the direction of the required First Lien Lenders, agrees that, subject to the occurrence of the Effective Date, NewCo shall provide funding to the VEBA in an aggregate nominal amount of $13 million (the ‘VEBA Funding’) for the benefit of the VEBA Beneficiaries.”
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