The Pension Benefit Guaranty Corp. will take over the defined benefit plan of Vertellus Specialties Inc., a specialty chemical manufacturer based in Indianapolis.
The $52.4 million Vertellus Specialties Inc. Defined Benefit Retirement Plan is 59% funded, and the PBGC will cover $35.8 million of a $36 million shortfall.
Vertellus and 10 affiliates are selling assets in bankruptcy proceedings and the potential buyer will not continue the pension plan, the agency said.
On May 31, Vertellus Specialties announced it filed for Chapter 11 bankruptcy protection and reached an agreement for its existing term loan lenders to purchase substantially all of its U.S. and international assets for $453.8 million. A hearing is slated for Wednesday to approve the sale of assets.
