The PBGC today filed a federal lawsuit in Detroit to take over the four pension plans of Rouge Steel Co., Dearborn, Mich. The plans have a combined $140 million in assets and $264 million in liabilities; the PBGC said it would be liable for about $84 million of the $124 million in total underfunding. Rouge Steel filed for Chapter 11 bankruptcy protection on Oct. 23.
The PBGC seeks to terminate the Rouge Steel pension plans effective Dec. 18, also the deadline for potential buyers to submit bids to purchase the company, said Jeffrey Speicher, PBGC spokesman. As of today, the only known bidder is Russia's OAO Severstal, which said it would not assume Rouge Steel's pension plans, Mr. Speicher said.