The Pension Benefit Guaranty Corp. will take over two pension plans for SP
Newsprint Co. LLC, Greenwich, Conn., as the company goes through Chapter 11
bankruptcy proceedings, the PBGC announced Tuesday.
According to bankruptcy court documents, a group of lenders is planning a
“stalking horse” bid for the company. A hearing to approve that bid is set for
Sept. 4. The new buyers are not assuming the SP Newsprint pension plans,
according to a PBGC news release.
PBGC officials estimate the two pension plans — the SP Newsprint Co. Pension
Plan and the SP Newsprint Co. Union Pension Plan — are 49% funded, with $74.4
million in assets and $150.7 million in liabilities. The PBGC will cover $73
million of the $76.3 million shortfall.
