The PBGC took over the pension plan of Denman Tire LLC, a Leavittsburg, Ohio-based tire manufacturer, confirmed Marc Hopkins, an agency spokesman.
The Pension Benefit Guaranty Corp. stepped in because Denman Tire, which covers more than 600 former workers and retirees, is liquidating in Chapter 7 bankruptcy proceedings and there will be no sponsor to fund or administer the plan, according to an agency news release.
The Denman Tire Corp. Pension Plan is 46% funded, with assets of $15.1 million and liabilities of $32.7 million, according to the release. The PBGC expects to be responsible for $17 million of the $17.6 million shortfall.
The plan was terminated on March 17, and the agency took over the plan Sept. 21.