Enterprise Law
Show Less

Enterprise Law

Contracts, Markets, and Laws in the US and Japan

Edited by Zenichi Shishido

Enterprise law represents the entire range of private contracts and public regulations governing the relationship of different capital providers. Enterprise Law comparatively analyses the way these fundamental legal frameworks complement each other in the United States and Japan.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: Reduction of retirees’ benefits upon the reorganization of a company

Gen Goto


In the wake of the global financial crisis of 2008, both the United States and Japan have experienced the collapse and subsequent reorganization of some of their largest companies, including General Motors (GM) in the United States and Japan Airlines (JAL) in Japan. In the reorganization processes of both GM and JAL, one of the key issues to be resolved was the reduction of retiree benefit payment obligations of the companies (the “legacy cost”). The legacy cost took the form of healthcare and life insurance benefits in the case of GM and a defined-benefit pension plan in the case of JAL. The negotiation for the reduction of these payment obligations took place under the shadow of laws regarding the priority of claims of retirees in a bankruptcy scenario and the modification of such claims.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.