The PBGC will take over the three defined benefit plans of Erving Industries Inc., Erving, Mass.
“The company could not emerge from (Chapter 11) bankruptcy without terminating its three pension plans,” according to a news release from the Pension Benefit Guaranty Corp.
The three plans have combined assets of $16.8 million and a total of $32.9 million in liabilities. The PBGC expects to cover $14.7 million of the $16.1 million shortfall.
In a telephone interview, Denis Emmett, CFO and treasurer of Erving Industries, said his firm should emerge from bankruptcy protection “shortly.”