The PBGC assumed responsibility for the pension fund of textile company Blumenthal Print Works Inc., New Orleans, confirmed PBGC spokesman Marc Hopkins.
The textile company had originally filed for Chapter 11 bankruptcy protection but on Jan. 27 changed to a Chapter 7 liquidation.
The Pension Benefit Guaranty Corp. estimates that the plan is 52% funded, with $14.2 million in assets to cover $27.1 million in liabilities. The PBGC will assume $12.7 million of the $12.9 million shortfall.
The plan was frozen to new participants as of Dec. 1, 2005, and benefit accruals ceased as of Dec. 31, 2008.