By Doug Halonen ERJ staff (P&I)
The US-based Pension Benefit Guaranty Corp. has taken over the pension plan of Denman Tire LLC, a Leavittsburg, Ohio-based tyre manufacturer, confirmed Marc Hopkins, an agency spokesman.
The PBGC. stepped in because Denman Tire, which covers more than 600 former workers and retirees, is liquidating in Chapter 7 bankruptcy proceedings and there will be no sponsor to fund or administer the plan, according to an agency news release.
The Denman Tire Corp. Pension Plan is 46 percent funded, with assets of $15.1 million and liabilities of $32.7 million, according to the release. The PBGC expects to be responsible for $17 million of the $17.6 million shortfall.
The plan was terminated on March 17, and the agency took over the plan Sept. 21.
From Pensions & Investments (A Crain publication)
Press release from Pension Benefit Guaranty Corp.