Werner creditors committee gets court OK to cease life insurance benefits for certain retirees

By Reshmi Basu

New York, Oct. 4 - Werner Holding Co. (DE), Inc.'s official committee of unsecured creditors received court approval to end life insurance benefits to certain former employees, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, there are 200 retirees who are covered by a group policy provided by Aetna, which provides for $5,000 of life insurance upon the death of a former worker.

The creditors argued that since the company is not legally obligated to fund the benefits, its termination would preserve the limited, valuable resources that are needed to confirm the company's plan of reorganization.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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