Budd request for appointment of retirees committee approved by court

By Caroline Salls

Pittsburgh, April 14 - The Budd Co., Inc.'s motion for appointment of an official retirees committee for its Chapter 11 bankruptcy case was granted Monday by the U.S. Bankruptcy Court for the District of New Jersey.

The U.S. Trustee for Budd's case was ordered to appoint a committee comprised of non-union retirees.

As previously reported, Budd said it has roughly $384 million in cash, which constitutes substantially all of its assets, and it estimates that its current liability for retiree benefits alone exceeds $800 million.

In addition, the company said it is no longer engaged in manufacturing, has no employees, has no significant source of revenue and does not have any prospect of developing revenue, much less revenue that would permit it to pay the retiree benefits in full.

As a result, Budd said it is looking to modify retiree benefits in order to provide fair and equitable treatment to its retirees and other creditors and, ultimately, confirm a Chapter 11 plan.

Chicago-based Budd made stainless steel rail cars. The company filed bankruptcy on March 31 under Chapter 11 case number 14-11873.

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