The Pension Benefit Guaranty Corp. is assuming the defined benefit pension plan of the Journal Register Co., the agency announced Tuesday.
The Journal Register Co. and its Yardley, Pa.-based subsidiary Journal Register East Inc., which sponsors the defined benefit plan, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in New York in September 2012, PBGC spokesman Marc Hopkins said.
In April 2013, Journal Register owner Digital First Media, New York, sold the assets to 21st CMH Acquisition Co., an affiliate of funds managed by Alden Global Capital, according to a Digital First Media news release.
PBGC officials estimate that the Journal Register pension plan is 51% funded, with $91.5 million in assets to pay $177.7 million in benefits. The PBGC will cover the entire $86.2 million shortfall.
Calls to Digital First Media spokesman Jonathan Cooper weren't returned by press time.