Textile Companys Plan Taken Over by PBGC
The Pension Benefit Guaranty Corp. has assumed responsibility for textile company Blumenthal Print Works Inc. in New Orleans, confirmed PBGC spokesman Marc Hopkins.
The textile company had originally filed for Chapter 11 bankruptcy protection but on January 27 changed the filing to a Chapter 7 liquidation.
The PBGC estimates that the plan is 52 percent funded, with $14.2 million in assets to cover $27.1 million in liabilities. The PBGC will assume $12.7 million of the $12.9 million shortfall.
The plan was frozen to new participants as of December 1, 2005, and benefit accruals ceased as of December 31, 2008.