Employee Benefits and Executive Compensation under the New Bankruptcy Act

"On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Act), which is generally effective for bankruptcy filings commenced after October 17, 2005.

The Act clarifies how certain Bankruptcy Code rules apply to employee benefits and enhances the protection of plan benefits in bankruptcy and contains new restrictions on executive compensation that may be paid by an employer in (or prior to) bankruptcy."

This article from McDermott Will & Emery via Mondaq contains a summary of the Act's principal provisions affecting employee benefits and executive compensation."