The PBGC will take over two defined benefit pension plans of bankrupt RG Steel LLC, Sparrows Point, Md.
RG Steel has sold most of its assets mainly to liquidators, none of which assumed the pension plans, according to a statement from the Pension Benefit Guaranty Corp. The PBGC moved to terminate the pension plans during liquidation to avoid their abandonment.
The PBGC is taking over the RG Steel Warren LLC Hourly Employees Pension Plan and the RG Steel Wheeling LLC Pension Plan. As of July 31, the Warren plan was underfunded by $81.7 million and the Wheeling plan was underfunded by $7.4 million. No asset figures were available.
RG Steel in May filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware.
Calls to RG Steel and the United Steelworkers union, which represents workers at the facilities, were not returned at press time.