FSA plan termination with a merger

[Guest scm]

We have recently merged with another corporation which has an FSA plan (Health care and dependent care). If we terminate their existing plan on the date of the merger (since they will be our employees on that date), what happens to the outstanding account balances (both positive and negative)? Also, I'm thinking that this plan termination would be considered a Q.E. enabling the employee to enroll in our FSA - is this correct? Any ideas how to make this a simpler process???