The PBGC took over the defined benefit pension plan of Chesapeake Corp., Richmond, Va., confirmed Marc Hopkins, PBGC spokesman.
Chesapeake has sold substantially all of its assets in Chapter 11 bankruptcy proceedings and the plan faced abandonment, according to a news release from the Pension Benefit Guaranty Corp.
The plan is 68% funded, with assets of $43.4 million and liabilities of $63.5 million; the PBGC expects to cover the entire $20.1 million shortfall, the news release said.
Chesapeake filed for Chapter 11 bankruptcy protection on Dec. 29, 2008, and the plan was terminated on March 23, the news release said.
Mr. Hopkins said the PBGC has taken over 58 plans since Oct. 1, the start of its fiscal year, up from the 23 the agency took over during the same period last year.