The PBGC assumed responsibility for the pension plan sponsored by Jernberg Industries Inc., Chicago, according to Gary Pastorius, a spokesman for the agency. The automotive parts manufacturer sold its assets after filing for Chapter 11 bankruptcy protection in June 2005 and no purchaser was willing to take over the plan, Mr. Pastorius confirmed.
The plan is 47% funded with $10.3 million in assets to cover nearly $22 million in promised benefits, according to PBGC estimates. The agency expects to be liable for $10.2 million of the $11.7 million shortfall, according to a news release.
The pension plan was terminated as of Sept. 7, 2005, and the PBGC became trustee May 1.
