From a Kevin Carson post on the Mutualists Yahoo! Group:
Pension fund obligations should be given the same standing as those of any other creditor in Chapter Eleven proceedings, even if it means the reorganization completely expropriates the shareholders. I'd guess GM's pension fund liabilities were far in excess of any debt held by bond holders, and when the company defaulted on paying its full obligation the workers should have got shares sufficient in value to make up the difference.
It never ceases to amaze me (though it shouldn't) that the same people who defend Ch. 7 "bankruptcy reform" on the grounds that the "deadbeats" chose to take on debt and shouldn't be able to whine their way out of it, are the same ones who whine about poor old GM's pension and healthcare liabilities and think it's only fair for them to weasel out of them.
Amen, brother!
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