The Pension Benefit Guaranty Corp. was expected last week to ask the U.S. District Court in Brooklyn, N.Y., to terminate Anchor Glass Container Corp.'s three pension plans, which are underfunded by about $185 million.
The agency wants to become trustee to the plans, which cover 15,600 workers and retirees. The Tampa glass container manufacturer filed for Chapter 11 bankruptcy protection in September and is in the process of selling its assets. PBGC officials believe Consumers Packaging Co., Toronto, which is buying most of the company, won't be able to support the plans.
The PBGC hasn't had as large a case since 1993, when the agency terminated Sharon Steel Co.'s five plans, which were underfunded by $250 million. About 1,200 participants lost part of their benefits because of limits on the PBGC guarantee.