(Bloomberg) — The Pension Benefit Guaranty Corp. is about to take over Reichhold Inc.'s retirement plan, which covers almost 4,500 current and former workers at the maker of polyester resins, saying it's underfunded by $97.4 million.

A bankruptcy judge in Delaware last month approved the sale of Reichhold's business, partly in exchange for $46 million in junior secured debt. After the sale is completed this month, the Durham, North Carolina-based company won't have any active operations.

In October, the PBGC started the process of terminating the pension plan, whose benefits were frozen in December 2012. Reichhold arranged a Feb. 23 court hearing in Wilmington, Delaware, to seek approval of an agreement terminating the plan and handing the assets over to the PBGC.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.