Walter Energy Affiliates’ 1995 Bankruptcy Axes Benefits Claims

Jim Walter Resources and its affiliated companies’ 1995 bankruptcy reorganization removed their related businesses’ obligation to provide future health care benefits to retired coal workers, the Eleventh Circuit said.

The reorganization discharged any claims against the debtor companies that arose before their bankruptcy plan was approved, the U.S. Court of Appeals for the Eleventh Circuit said Tuesday.

The Eleventh Circuit’s published 2-1 opinion reverses bankruptcy and Florida district court decisions. It hands a win to the three Jim Walter Resources’ related companies in the case—United States Pipe and Foundry Company LLC, JW Aluminum Company, and JW Windows Components LLC.

Jim ...