WASHINGTON -- The U.S. Pension Benefit Guaranty Corp. today seized the retirement plan of auto supplier Grede Foundries Inc., said agency spokesman Marc Hopkins.
The plan is 45 percent funded with $60.9 million in assets and $135.3 million in liabilities. PBGC expects to cover $69.7 million of the $74.4 million shortfall, according to a news release from the PBGC.
The plan was terminated on Nov. 30, 2009, and the PBGC assumed responsibility for the plan on June 14, the news release said.
Grede, which is based in suburban Detroit and has a history dating back to 1920, filed for Chapter 11 bankruptcy protection on June 30, 2009. Its pensions and other liabilities are being handled in bankruptcy court.
However, the company's active operations and assets were sold during Chapter 11 proceedings and combined with those of supplier Citation Corp.
The reorganized company makes a variety of metal casts along with machined and assembled components for several vehicle assembly and industrial markets. It operates 16 plants in seven states with about 3,100 employees, according to its Web site.