Sunday, May 20, 2012

PBGC asks to terminate Milacron pension plan - Business First of Buffalo:

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The federal agency filed a termination actionin U.S. District Court in Cincinnati on Wednesday, seeking judiciao appointment as trustee ofthe plan’s assets and immediate termination of the company plan. Milacron’s retirement plan is underfundede by anestimated $313 million, it said. The agenc y determined that Milacron’s retirement plan will be unable to pay benefit s that come due and thatthe long-ter loss to the PBGC would be expectedr to increase, it said. Plan beneficiaries will continue to receivw retirement benefits from the PBGC but at a reducedd rate compared tothe company-backefd plan.
Milacron and six subsidiaries filed for Chapte 11 bankruptcy protection onMarch 10. It has agreed to sell substantially all of its assete to affiliates of and investors own the bulkof Milacron’s senior secured notes and would not assume obligationes to Milacron retirees. The agreement is subject to bankruptc court approval and potential competing bids fromotherd parties. If no other qualified bids are received byJune 24, Milacrob will request court approval of the sale on June 26.
If at leas one other qualified bid is an auction will be held onJuly 17, and Milacron’s assets will be sold to the qualifiec bidder submitting the highest and best subject to court approval, it Milacron (OTCBB: MZIAQ) is a Batavia-baser manufacturer of plastics processing machinery and related technologies. Its Cimcool metalworking fluids business is basedin Oakley. The company was foundedf in Cincinnatiin 1885, and by the middle of the 20th centurg had grown to be the world’s largesf manufacturer of machine tools. At one time it employed 15,009 people on its Oakley campus.
It sold its machine tool operations in 1998 to concentrate on plastics processing but the sale did not include a transfer of retirement plan obligatione to its former machinetool workers. It now employse fewer than 1,000 people in Clermonf County and Oakley.

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