Regulators Alarmed by Plan to Release WC Trust Funds in Bankruptcy

State regulators are decrying a reorganization plan before a U.S. Bankruptcy Court judge in Maine that would appropriate to general creditors money that a company had placed in trusts for workers' compensation claims, calling it an "unprecedented" blow to state workers' compensation law and self-insurance regulation.The International Association of Industrial Accident Boards and Commissions (IAIABC) on Friday issued a report predicting that court approval of Prime Tanning-Hartland's pending Chapter 11 reorganization plan will "weaken the recovery of benefits under state workers'...