The PBGC assumed responsibility for Republic Storage Systems Co. Inc.'s two pension plans, which have a combined $25 million in assets, confirmed PBGC spokesman Gary Pastorius. The Canton, Ohio-based firm has been under Chapter 11 bankruptcy protection since March 14, and the plans were likely going to be abandoned, according to a PBGC news release. As part of the proceedings, Republic Storage sold its assets to Chrysalis Capital, Philadelphia, which did not assume sponsorship of the plans.
Together, the two plans are 47% funded, with more than $54 million in promised benefits, according to PBGC estimates. The agency will cover all but $6 million of the $29 million shortfall.