An attempt by a public pension plan to seek Chapter 11 bankruptcy protection ended last week when U.S. Bankruptcy Judge Robert J. Faris in Honolulu, granted a motion to dismiss the case.
Northern Mariana Islands Retirement Fund, Saipan, a U.S. territory, filed for bankruptcy in April to resolve its drastic underfunding situation. At the time of the filing, the public defined benefit plan had $268.4 million in assets and $911 million in liabilities.
Mr. Faris dismissed the case June 13 because the pension fund was a “governmental unit” not eligible for bankruptcy relief. But he wrote the trustees “should be praised, not criticized, for commencing this case.”