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Asset Sale Limitation Under Section 4225(a)

Brian Haynes

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Section 4225(a) requires that there be a bona fide sale of all or substantially of the "employer's" assets in a arms'-length sale to an unrelated party.  Where you have another member of the selling and signatory employer's control group (here a company that owns the building that was leased to the signatory employer), must there be a sale of assets of both the signatory operating company and the related real estate company for Section 4225(a) to apply?  I think the issue is whether under ERISA the concept that all companies in the control group are deemed to be the same employer applies to Section 4225(a) so that all companies in the control group must be sold.  I have not found any precedent for this but this does not sound correct to me.  If any one has any thoughts, they would be most appreciated.  Thanks.    

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