(updated with correction)
Pension Benefit Guaranty Corp. will take over two defined benefit pension plans of auto parts supplier Metavation LLC as the company parent Revstone Transportation LLC sells its interest, agency officials announced Friday.
Based on information provided by Metavation, PBGC officials estimate that the two plans, Hillsdale Salaried Pension Plan and Hillsdale Hourly Pension Plan, have a total of $47 million in assets and $93 million in liabilities. The PBGC is expected to cover most of the $46 million shortfall for the plans, which are based in Lexington, Ky.
Metavation, based in Southfield, Mich., will control the plans until the PBGC becomes trustee and notifies more than 1,500 current and future retirees.
Revstone Transportation said in a statement that it estimates the plans to be 78% to 85% funded, and disagrees with the PBGC that selling its interest will compromise the pension plans.
“Quite the opposite, we believe a sale will put the customers, the suppliers, the employees and the plan participants in a better position. ... We look forward to working with the PBGC to come to a resolution of the perceived issues,” the statement said.
Revstone Industries filed for Chapter 11 bankruptcy protection in Delaware bankruptcy court on Dec. 3. The PBGC is on the unsecured creditors' committee in that case.