PBGC to take over Pennfield pension fund

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.