The third multi-billion dollar distribution to general creditors
is underway as winding down the estate moves ahead," Giddens said.
On the other side, the general creditors
or other parties who do business exclusively with LuxuryOne may now have bankruptcy objections or strategic hold-up options that would not otherwise exist.
When it came to Wachovia, they did a deal with Citigroup before Wells Fargo bought it without FDIC assistance--but the FDIC had agreed to do a deal with Citigroup with some FDIC support in the deal, and there the FDIC took care of all general creditors
of the bank.
35) Moreover, the statutory language is not literally limited to rabbi trusts, but applies "whether or not such assets are available to satisfy claims of general creditors
The Eighth Circuit Court of Appeals has determined that a plan, in which an employer purchased whole life insurance policies for employees, was "funded" for ERISA purposes because the insurance policies were not made available to the general creditors
of the employer and the insurance policies created a res separate and apart from the general assets of the employer.
If the value of assets exceeds the amount of total deposits, then the bank's general creditors
are next in line to receive payments, followed by subordinated debt holders.
Significantly at risk, since participants are generally treated as unsecured general creditors
This is unlike cherry picking, which involves disavowing unfavorable contracts and forcing the counterparties to become general creditors
for the firm.
The plan also calls for Sato Kogyo to repay its liabilities owed to general creditors
over the next 10 years.
This means that throughout the entire deferral period, all of your deferred compensation and related investment income remain your employer's property and are subject to the claims of your organization's general creditors
The FDIC also took the extraordinary step of announcing on May 17, 1984, that all general creditors
of the bank would be fully protected against loss.
Unpaid depositors usually had no better rights in the liquidation of a failed bank than did other general creditors
, and banks usually were prohibited from giving security for deposits, other than deposits of public funds.