Debtors Seek Judgment In Bankruptcy Dispute Over Deferred Compensation Plans

( May 16, 2025, 9:13 AM EDT) -- HOUSTON —  In the aftermath of a decision that two deferred compensation plans associated with Steward Health Care System LLC are “top hat” ones and therefore roughly $60 million in “rabbi trusts” used for them could be liquidated as part of Chapter 11 bankruptcies, the debtors urged a Texas federal bankruptcy court to rule that a putative class adversary complaint in which plan participants invoke the Employee Retirement Income Security Act “is foreclosed by the doctrines of law of the case and issue preclusion.”...