Huffy Corp., Miamisburg, Ohio, received bankruptcy court approval to terminate its pension plan, according to a court order. Judge Lawrence S. Walter of the U.S. Bankruptcy Court in Dayton, Ohio, signed the order Wednesday, granting Huffy's July 5 motion and saying the plan would be terminated "effective immediately."
Attorneys representing Huffy argued in the motion that terminating the plan "is a vital component of (Huffy's) reorganization plans, not only saving a significant amount of cash but also allowing (Huffy) to attract the necessary sources of liquidity to fund the reorganization." Court papers said the pension plan had about $72.2 million in assets and $135.4 million in liabilities as of Jan. 1.
Ralph L. Landy, a staff attorney with the PBGC who is representing the agency in the Huffy bankruptcy case, declined to comment. Jeffrey Speicher, a PBGC spokesman, could not provide an estimate of how much in Huffy plan liabilities the PBGC would assume.
The bankruptcy court also approved the disclosure statement for the company's reorganization plan on Wednesday. The court will consider plan confirmation at a hearing Sept. 22.