Company A & B are brother sister controlled group (each has identical shareholders) with all A & B employees covered by one health plan.
Shareholders of Company A sell all assets to Purchaser. Purchaser hires all former A employees and covers them under its plan.
Shareholders of Company A & B drop their health plan as a result of the asset sale.
Company B employees remain employed by Company B but they have now lost their insurance.
Are Company B employees entitled to COBRA?
My thought is no, because they have not had a qualifying event.
Does anyone agree/disagree?