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Bethlehem Steele

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What is the economic importance of the pension plan, relative to the operations of Bethlehem Steel?

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Solution Summary

describes the role a pension plan played in a firms demise

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By 2002, Bethlehem Steel's pension plan was extremely underfunded. The plan was only 40% funded. While they had not missed any distribution payments the company could not affort to keep up with the funding costs of the pension fund. The company had been operating under Chapter 11 Bankruptcy protection for about a year and were in negotiations to ...

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