The Pension Benefit Guaranty Corp. is taking over and terminating the underfunded pension plan of Constar Inc., a financially troubled Trevose, Pa.-based plastic container manufacturer.
The PBGC said Wednesday it is stepping in because Constar is selling the majority of its assets in bankruptcy reorganization proceedings and the potential buyer, Amcor Rigid Plastics USA Inc., a unit of Australian packaging and plastics giant Amcor Ltd., hasn't agreed to continue the company's pension plan.
According to PBGC estimates, Constar's plan is 66%% funded, with $89.6 million in assets to pay $135 million in benefits. The agency said it expects to cover $44.7 million of the $45.4 million shortfall.
The plan has about 4,400 participants, the PBGC said.