In Re Schatz Fed. Bearings Co., Inc.
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) sought to withdraw from the Creditors’ Committee in the bankruptcy estate of Schatz Federal Bearings Co., Inc. The Creditors’ Committee opposed the withdrawal, aiming to preserve its appeal of an earlier ruling that deemed the UAW eligible to serve. The court granted the UAW's application to withdraw, citing that a creditor's willingness to serve is a key factor in committee composition and that compelling service is not justified when the creditor no longer has an interest in the case, especially since the debtor's business has ceased and its assets were liquidated. The court also noted the UAW's pension rights were guaranteed by ERISA and it had negotiated a new contract with the asset buyer, making its position on the committee academic.