Successor Employer - Asset sale

[Guest sidalee1]

I am looking for some guidance on when a buying organization constitutes a "successor employer." We have a situation where we are buying assets from selling company and another company is also buying assets from the selling company. At the end of the day, the selling company will cease its operations and there will be approximately 14 employees of the selling company who will not be hired by either us or the other buying company. Both purchasing companies will be using the assets in the same capacity as the assets were utilized by the selling company. We are purchasing less than 50% of the assets while the other company is purchasing a more than 50% of the assets - which company, if any has the COBRA obligation? The regs provide that if he selling group ceases to provide any gph in connection with the sale AND the buying group continues the business operations associated with the assets purchased ... without interruption or substantial change, then the buying group is a successor employer...

Any guidance would be appreciated,

Thanks

[Guest Isadora]

Just to get the conversation rolling...

Did the original company have only 14 employees? If so Cobra doesn't apply as you need 20.

I am looking for some guidance on when a buying organization constitutes a "successor employer." We have a situation where we are buying assets from selling company and another company is also buying assets from the selling company. At the end of the day, the selling company will cease its operations and there will be approximately 14 employees of the selling company who will not be hired by either us or the other buying company. Both purchasing companies will be using the assets in the same capacity as the assets were utilized by the selling company. We are purchasing less than 50% of the assets while the other company is purchasing a more than 50% of the assets - which company, if any has the COBRA obligation? The regs provide that if he selling group ceases to provide any gph in connection with the sale AND the buying group continues the business operations associated with the assets purchased ... without interruption or substantial change, then the buying group is a successor employer...

Any guidance would be appreciated,

Thanks

[Guest sidalee1]

No, 14 is the number of employees who will not be hired by either company. My company is hiring around 28 and the other is hiring around 50.