Private equity funds beware: “investment plus” can result in fund responsibility for portfolio companies’ pension withdrawal liabilities

Today, who is and will be responsible for funding pension liabilities is a primary consideration in both private and public sector restructurings. The filing of the Detroit bankruptcy case is just the most recent example of how this issue is impacting the public sector. In the private sector, the disposition of pension plans and resulting liabilities claims both in and outside of bankruptcy has become a driving consideration in restructurings and merger and acquisition due diligence and strategy.