The PBGC will assume responsibility for the defined benefit pension plan of Sencorp, Cincinnati, a manufacturer of battery-powered staplers, nailers and screw systems, according to a PBGC news release.
The Pension Benefit Guaranty Corp. will take responsibility for the plan before Sencorp is sold to Wynnchurch Capital for $41 million; the sale is scheduled to be completed on Thursday.
The retirement plan is 62% funded, with $79 million in assets and $126 million in liabilities. The PBGC expects to pay the entire $47 million shortfall.
Sencorp filed for Chapter 11 bankruptcy protection on May 8.