The PBGC sold roughly $2.5 billion of shares it holds in Chicago-based UAL Corp., parent of United Airlines, said Jeffrey Speicher, PBGC spokesman.
"Total sale proceeds amounted to about $450 million, or 18 cents on the dollar ... about 30% of the recovery will go to reduce the losses incurred by plan participants," he said. The PBGC confirmed earlier this week that it had hired Deutsche Bank to complete the sale, which occurred Wednesday.
The PBGC owned $5.6 billion in UAL shares as part of its deal with the airline to assume responsibility for United's pension plans. All of the airline's pension obligations were resolved before the airline emerged from Chapter 11 bankruptcy protection on Feb. 1, said United spokeswoman Jean Medina.
