I have been brushing up on the COBRA rules surrounding asset sales. Assuming the buyer is carrying on business similarly to before the sale, my question (or rather I want to confirm) is that if the seller is no longer in existence and thus, no more health coverage, isn't the buyer required to offer COBRA to the qualified beneficiaries? I know in the past, this was not true, but I am thinking a law was passed so that employees aren't left without health coverage - even if it's COBRA. What if the buyer doesn't offer health coverage? What then?

Questions and answers regarding Mergers and Aquisitions were published in the Federal Register 7/31/2001. 26 CFR - CHAPTER I - PART 54, § 54.4980B-9 Business reorganizations and employer withdrawals from multiemployer plans.