The PBGC will take over the defined benefit pension fund of Pennfield Corp., Lancaster, Pa., the agency announced on Monday.
The Pension Benefit Guaranty Corp. issued a statement that it will take over the plan as a result of the company selling the majority of its assets in bankruptcy proceedings to Cargill Inc. Cargill had completed the asset purchase agreement of Pennfield Corp. in January for $9.8 million, according to a Cargill news release. Pennfield Corp. had filed for Chapter 11 bankruptcy in October 2012.
Pennfield Corp.'s pension fund had about $15 million in assets compared to $28 million in liabilities, for a 54% funding ratio,according to PBGC estimates.
Officials at Pennfield could not be reached by press time.