Werner's unsecured creditors ask for termination of medical benefits for former officers and directors

By Reshmi Basu

New York, Aug. 24 - Werner Holding Co. (DE)'s official committee of unsecured creditors asked for the termination of medical benefits for certain retired officers and directors of the company, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the corporate minutes, the company is under no obligation to cover these benefits, which is costing Werner $7,000 to $11,000 per month, the creditors' committee said in the motion.

The continued payment will "deplete the estates of already limited resources," the committee argued.

A hearing is scheduled for Sept. 12.

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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