PBGC takes over pension plan sponsored by estate of Victor Posner

Millionaire industrialist Victor Posner walks into a U.S. federal court in Miami, Florida on Feb.12, 1988 for sentencing in his trial on charges of evading $1.2 million in income taxes./ AP Photo

The Pension Benefit Guaranty Corp. is taking over and terminating the underfunded pension plan sponsored by the estate of one-time businessman and corporate raider Victor Posner.

The PBGC said Tuesday it is stepping in because the assets of the Posner estate are being distributed by a Florida probate court, and the pension plan will be abandoned.

The plan, which has 2,101 participants, is 39% funded with $25 million in assets and $63.9 million in liabilities. The PBGC said it expects to cover the entire $38.8 million funding shortfall.

Mr. Posner, who died in 2002, at one time had controlling interests in numerous corporations, including Arby's, Royal Crown Cola and Sharon Steel Corp.

A 2002 New York Times obituary said Mr. Posner mismanaged many of “these companies into bankruptcy but enriched himself as they foundered.”