Republic Technologies International LLC, Akron, Ohio, did not receive notice that the PBGC will take over its four pension plans, according to a statement from the company. The Pension Benefit Guaranty Corp. on Friday announced it will take over the plans from the bankrupt steelmaker, estimating nearly $165 million in assets and liabilities of around $475 million.
The statement said the United Steelworkers of America also was not notified. Moreover, the company reiterated that it is in the midst of talks to sell its facilities to the KPS Special Situations Fund and the Hunt Investment Group, which plan to continue operations. "It is unfortunate that the government representatives felt it was more important to set their agenda than to work with the company or union, or even communicate their decision,” RTI said in a statement.
The agency filed a motion on Friday in federal court to terminate the plans and be appointed as trustee, according to a PBGC spokesman. "The fact of the matter is that they are selling their productive assets on July 9 and according to the documents they filed with the bankruptcy court after the assets are sold they will wind down the affairs of the remaining assets and liquidate them, so the process of liquidation seems to be a semantic dispute here.”
