The PBGC assumed responsibility for the underfunded defined benefit pension plan of Nortel Networks Inc., the Nashville, Tenn.-based subsidiary of Canadian telecommunications company Nortel Networks Corp.
The plan is 58% funded, with $716 million in assets to cover $1.23 billion in liabilities. The PBGC will cover the entire shortfall.
The plan has been frozen for all participants since Dec. 31, 2007. The parent company is in Chapter 11 bankruptcy.