"Pension dumping" is the story of how terminating the pension plan has become a knee-jerk strategy for bankrupt companies that hope to attract big investors to help them restructure - Provided by publisher

We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states of nature and default may lead to the sale of the firms' assets at fire sale prices when markets are illiquid. This incompleteness is the only friction in the model and the...