Article: $937 million liability; Underfunding could bring sour note to troubled Vivendi's divestiture plan.(Vivendi Universal, pension fund liability)(Brief Article)

PARIS - Vivendi Universal SA's $937 million unfunded pension and post-retirement liability could complicate the company's attempt to avoid bankruptcy by divesting key businesses.

That figure is as of Dec. 31, and actuaries say the liability has worsened considerably since then.

Analysts covering Vivendi said the deficit could deter potential buyers of key American assets that could be up for sale in the near future, including Universal Music, Universal Studios and Vivendi Universal Publishing.

The largest share of the underfunding is believed to have come from the $868 million defined benefit plan of Joseph E. Seagram & Sons, purchased in 2000. ...

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