Chemtura Corp., Philadelphia, reached an agreement with the PBGC to make an additional $50 million contribution to one of its three defined benefit pension plans, said Marc Hopkins, a PBGC spokesman.
Mr. Hopkins said the Pension Benefit Guaranty Corp. negotiated the agreement as a condition for Chemtura to emerge from Chapter 11 bankruptcy protection.
“This is a great development for the company’s 15,000 workers and retirees, because they will keep the pensions they have earned,” Joshua Gotbaum, PBGC director, said in a news release. “It’s also a good day for the PBGC because some $330 million in obligations will stay with Chemtura instead of moving to the PBGC.”
The three pension plans had total assets of $625 million as of Dec. 31, according to the company’s 10-K filing.
John Gustavsen, a company spokesman, had not returned calls by press time.