Amcast Industrial Corp., Dayton, Ohio, received bankruptcy court approval to terminate its pension plan, and the PBGC will become the plan's trustee, according to court documents. Terminating the plan is in the best interest of the company and its creditors, and Amcast would be unable to pay all its debts under a reorganization plan or continue operating outside of Chapter 11 protection "unless the pension plan is terminated," according to the order signed Thursday by U.S. Bankruptcy Court Judge Lawrence S. Walter in Dayton, Ohio.
Jeffrey Speicher, PBGC spokesman, said the agency estimates the plan has about $81 million in assets and roughly $166 million in liabilities. The PBGC estimates it will be responsible for about $79 million of the underfunding.
Amcast filed for Chapter 11 bankruptcy protection in November.