The Pension Benefit Guaranty Corp. has assumed control of the pension fund of Lehman Brothers Holdings, PBGC spokesman Jeffrey Speicher said Friday, June 19.
The Lehman Brothers plan had about $1.2 billion in assets and $1.04 billion in liabilities as of January 1, 2008, according to the U.S. Bankruptcy Court in New York. The PBGC took over the plan Wednesday, June 17, Speicher said.
Speicher said the plan had a shortfall of $115 million when it was terminated on December 12. Earlier this month, Bankruptcy Court Judge James Peck ordered Lehman to pay $127.6 million to the PBGC to shore up the plan.
Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. Five days later, the bankruptcy court approved the $1.75 billion sale of the company’s capital markets and investment banking operations to Barclays Capital.
Filed by Doug Halonen of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.
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