Penn Traffic Co.’s three defined benefit pension plans, all based in Syracuse, N.Y., have been taken over by the PBGC, confirmed Gary Pastorius, agency spokesman.
The plans face abandonment as Penn Traffic liquidates its assets in Chapter 11 bankruptcy proceedings.
The plans — Penn Traffic Big Bear Retirement Plan, the Pension Plan for Bargaining Employees of Eastern Pennsylvania and the Riverside Division of Penn Traffic Co. Bargaining Employees Pension Plan — are collectively 57% funded, with $74.3 million in assets and liabilities of $130.1 million, the news release said.
The Pension Benefit Guaranty Corp. expects to cover $53.8 million of the $55.8 million shortfall.
The company filed for Chapter 11 bankruptcy protection on Nov. 18, according to Mr. Pastorius. The plans were terminated Jan 25 and PBGC became the plans’ trustee on June 17.