… and the man after whom the school’s Rennert Entrepreneurial Institute is named, once again shows YU students how to conduct themselves in business.
[T]he government said that Renco had lied when asked about the transaction to keep the pension insurer from finding out about the ownership change until too late. Once a controlled group has been broken, the pension agency loses its ability to go after the parent company’s assets.
And four months later, when R.G. Steel declared bankruptcy, the federal government had to take over the pension obligations and cover a $70 million loss. It sued Renco for fraud, arguing that the deal with Cerberus was a sham, intended primarily to break the link between R.G. Steel and Renco’s wealth.
Details on pensioners and their retirement income here.
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Sure, every once in awhile, just like Yeshiva trustee Zigi Wilf, you attract the attention of the courts. Big deal. Price of doing business.
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Now, REI grads, go out there and make some deals!