The PBGC assumed responsibility for the pension plan of Francisco Mendoza Inc., a Cayey, Puerto Rico, furniture and household appliances retailer, according to a PBGC news release.
The plan is estimated to be 52% funded, with $3.5 million in assets and $6.8 million liabilities. The Pension Benefit Guaranty Corp., which became trustee of the plan on March 4, will cover $3.1 million of the shortfall.
The company filed for Chapter 11 bankruptcy protection on March 21, 2007.
