AbitibiBowater Inc., Montreal, agreed to maintain its four U.S. defined benefit pension plans as the company emerges from Chapter 11 bankruptcy proceedings, confirmed Marc Hopkins, a spokesman for the PBGC.
The four U.S. plans have combined assets of $508 million, Mr. Hopkins said.
In a news release Tuesday, Joshua Gotbaum, director of the Pension Benefit Guaranty Corp., said the agreement was good news for the company’s 10,000 workers and retirees in the U.S., and would also keep $380 million of underfunding off the PBGC’s books.
“Our legal and financial team has worked step by step with the company to make this outcome possible,” Mr. Gotbaum said in the news release.
The pulp and paper manufacturing company sought Chapter 11 protection in U.S. Bankruptcy Court in Delaware on April 16, 2009. The court approved the company’s reorganization plan on Monday, according to a company news release.
Elaine Washington, director of pensions and investments for the company, declined to comment.