PBGC takes over SP Newsprint pensions
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The Pension Benefit Guaranty Corp. is taking over and terminating two underfunded pension plans sponsored by a bankrupt newsprint producer.
The PBGC said Tuesday it is taking the action because the plans' sponsor, SP Newsprint Co. L.L.C. of Greenwich, Conn., intends to sell its assets in bankruptcy proceedings, with the buyers not assuming the pension plans. SP Newsprint filed for Chapter 11 bankruptcy in November 2011.
The two plans, which have about 1,300 participants, are 49% funded, with $74.4 million in assets and $150.7 million in liabilities. The PBGC said it expects to cover $73 million of the $76.3 million funding shortfall.
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