PBGC Negotiates $55 Million In Pension Protection With Visteon
06 January 2009 - 5:41AM
Dow Jones News
The Pension Benefit Guaranty Corp. Monday announced a $55
million negotiated deal with Visteon Corp. (VC) that provides the
agency with additional protection against the company's pension
plan.
"Today's agreement significantly strengthens the financial
health of this plan. We commend Visteon's willingness to work with
us to achieve an outcome that is favorable to its employees and
retirees," PBGC's Director Charles Millard said.
The plan covers more than 5,300 former employees of the
automotive supplier at two closed facilities in Indiana.
The negotiated protection for the plan calls for Visteon to
accelerate a $10.5 million cash contribution to the plan, provide a
$15 million letter of credit, and have Visteon and its affiliates
be responsible for up to $30 million in contingent pension
obligations.
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684;
darrell.hughes@dowjones.com
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