Tower Automotive retiree settlement approvals affirmed by district court

By Caroline Salls

Pittsburgh, Dec. 19 - Approval of Tower Automotive Inc.'s settlements with retirees of its former Milwaukee facility and UAW, IUE-represented retirees were affirmed Tuesday by the U.S. District Court for the Southern District of New York, and the official committee of unsecured creditors' appeals of the rulings were subsequently dismissed.

According to the district court affirmation, the committee attempted to "gloss over" the extent of the retirees' concessions under the settlements, as the settlements forced retirees to survive on significantly reduced health and welfare benefits.

In addition, the district court said it cannot "completely ignore the practical difficulties involved in unwinding the settlements at this point."

The Novi, Mich.-based auto parts maker filed for bankruptcy on Feb. 1, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-10578.

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