Goodyear gets VEBA green light
Goodyear Tire & Rubber Co. can now remove liabilities for United Steelworkers retiree health care benefits from its balance sheet.
The 30-day period to appeal a United States District Court's order that approved the company's Voluntary Employees' Beneficiary Association (VEBA) trust has expired. No appeals were filed.
The VEBA is designed to provide health care benefits to current and future union retirees.
As of year-end 2007, Goodyear's retiree obligations totaled $1.2 billion.
The Akron, Ohio-based tiremaker made a one-time $1 billion cash contribution to the trust in August, using existing cash reserves and available credit lines.