Right to demand employer securities

[Guest GBMcGrath]

What practical solutions are there for the following situation? Buyer is buying all of the outstanding stock of a corporation, most of which is held in the ESOP. After the closing, the ESOP will hold cash. However, the plan, as required by 409(h), gives participants the right to demand their distributions in the form of employer securities. How can the plan eliminate the right to receive employer securities without violating 411(d)(6)? The new employer does not want to make the one-time offer to demand employer securities on a termination described in 1.411(d)-4, Q&A-2(B)(2)(iii). It just wants to terminate and distribute cash.