Huffy Corp., Miamisburg, Ohio, is asking a U.S. Bankruptcy Court to expedite approval of a claim settlement with the PBGC, according to court documents. The PBGC has filed claims in Huffy's Chapter 11 bankruptcy protection case totaling $86.9 million, but the company has disputed the amount. Under the proposed settlement, Huffy would grant the PBGC a $32 million general unsecured claim as part of the company's reorganization plan, and the agency would withdraw its claim, according to a motion filed Tuesday with U.S. Bankruptcy Court in Dayton, Ohio, which is overseeing the company's Chapter 11 reorganization. The motion said the settlement will "amicably resolve" the disputed claims and "avoid the risks and costs of litigation." Huffy is asking for a hearing on the proposed settlement no later than Sept. 22, when a hearing on confirmation of Huffy's reorganization plan is scheduled.
Huffy in August received bankruptcy court approval to terminate its pension plan, which had about $72.2 million in assets and $135.4 million in liabilities as of Jan. 1, court papers said. Jeffrey Speicher, a PBGC spokesman, said the agency has not yet estimated how much in Huffy plan liabilities the PBGC would assume.
