NEW YORK -- A pension plan covering 40,000 workers at a subsidiary of bankrupt Federal-Mogul Corp. has rejected a $130 million offer by financier Carl Icahn to keep the plan afloat, the pension plan's trustee said Friday.
The trustee for the pension fund for workers at the United Kingdom car parts maker, Turner & Newall, has been in last-ditch negotiations in recent weeks with U.S. bondholders led by Icahn in an effort to win more money to keep the plan afloat.
Icahn is expected to hold some 49 percent of Federal-Mogul's equity upon its emergence from Chapter 11 that the company plans this year or early next. Two weeks ago, Icahn rejected calls to increase any contribution to the plan, saying the offer was sufficient to keep the plan afloat.
The plan's trustees at corporate advisory firm Alexander Forbes said in a press release that it plans to ask a United Kingdom court for guidance on how to proceed.
Representatives for Federal-Mogul bond holders could not immediately be reached for comment.