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Sun-Times Media Group Suspends Pension Plan Payments
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Location: Blogs CII InfoBlog |
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| Posted by: larryc |
7/20/2009 7:46 AM |
Sun-Times Media Group, parent of the Chicago Sun-Times, filed for bankruptcy protection in March of this year and has since failed to make more than $800,000 in required payments to its five pension plans. According to a recent article posted by Workforce Management, the payments were due on April 15th and include: - $456,185 for a plan covering Chicago’s newsroom employees.
- $284,581 for a plan covering Chicago’s office employees.
- $63,063 for a plan covering Pioneer Newspaper employees in the suburbs.
It’s possible that Sun-Times Media has obtained a waiver from the Internal Revenue Service, allowing it to suspend contributions to pension plans in order to preserve cash and improve its balance sheet in the hopes of wooing a buyer. This move, along with lay-offs and pay cuts, seems to have slowed their cash burn rate, as the company reported last month that its cash balance stood at $25 million. Despite the company’s financial woes, which also include a $500 million tax bill left over from its days of being run by Conrad Black, Sun-Times Media Group has requested to pay its executives hefty bonuses if they succeed in selling the company. Bonuses would be paid with proceeds from the sale, and not the money used to fund the company’s daily operations. However, this must be a bitter bill to swallow for those employees who have lost their jobs or accepted pay cuts and will not share in the proceeds of a company sale, especially as pension contributions have not even been made. One wonders if companies are actually looking out for the best interests of their employees. Follow us on Twitter for our latest blog updates and background screening news! |
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