The PBGC today announced it has taken over two pension plans sponsored by Lenox Group Inc., Eden Prairie, Minn., a fine china manufacturer that is in Chapter 11 bankruptcy protection.
The PBGC said it stepped in because the plans would be abandoned after the sale of company assets, which is intended as part of Lenoxs bankruptcy reorganization proceeding.
Clarion Capital Partners completed the purchase of most Lenox assets in mid-March after an auction in February.
The two plans taken over by the PBGC have combined assets of $70 million and liabilities of $200 million. The PBGC said it expects to cover $128 million of the $130 million funding shortfall. Both plans were frozen on Jan. 1, 2007, and have about 4,300 participants.
Jerry Geisel is a reporter at Business Insurance, a sister publication of Pensions & Investments.