The Nation - News from Sept. 24, 1987

Federal bankruptcy Judge Burton Lifland ordered a government agency to show why its decision to turn financial responsibility for three LTV Corp. pension plans back to the company does not violate bankruptcy law and prior court order, the company said. The order came a day after the Pension Benefit Guaranty Corp. announced the administrative action. Dallas-based LTV sought the order because it believes PBGC violated the automatic stay of the Federal Bankruptcy Code and the court’s restraining order of July 17, 1986, issued when LTV filed for Chapter 11 protection from its creditors while it reorganized, a company spokesman said. Last January, the PBGC terminated and took trusteeship of the three pension plans of Dallas-based LTV.