The PBGC took over the defined benefit pension plan of Mother’s Cake & Cookie Co., Battle Creek, Mich.
The Pension Benefit Guaranty Corp. took over the plan because the company is liquidating its assets in Chapter 7 bankruptcy protection “with no asset purchaser willing to assume the plan,” according to a PBGC news release.
The plan is 71% funded, with assets of $24 million and liabilities of $34 million. The PBGC expects to cover the $10 million shortfall, according to the news release.
The plan, which covers a combined 1,100 workers and retirees, was terminated Oct. 6 when the company filed for bankruptcy protection, the news release said.