Renco Group Inc., New York, agreed to assume sponsorship of Warren, Ohio-based WCI Steel's underfunded pension plan, confirmed PBGC spokesman Jeffrey Speicher. The action by Renco, WCI Steel's corporate parent, will save the PBGC $94 million.
The PBGC filed a lawsuit in U.S. District Court in Youngstown, Ohio, last month to block WCI Steel from dumping its underfunded pension plan on the agency as part of its Chapter 11 bankruptcy protection proceedings initiated in 2003. The agency will withdraw its complaint as a result of the agreement with Renco.
The WCI plan had $138 million in assets and $255 million in liabilities as of Jan. 31.