Furniture Brands reaches pension settlement
The settlement, which still needs court approval, has the PBGC reducing its claim against the company from $340 million to $300 million.
In November,the PBGC said it would pay all pension benefits earned by Furniture Brands retirees up to the legal maximum of about $57,500 a year for a 65-year-old. The company has about 19,000 current and future retirees. When it filed for Chapter 11 bankruptcy protection on Sept. 9, Furniture Brands said it owed $609 million in benefits obligations, but it was only funded about 55 percent, according to PBGC.
The agency said it would cover $270 million of Furniture Brands’ pension obligations.
Most of Furniture Brands’ assets were purchased by KPS Capital Partners, which created Heritage Home Group to serve as the new parent company for Lane, Broyhill, Thomasville and other former FBI companies.
Lane, headquartered in Tupelo, employs several hundred at its Tupelo plant. It recently closed its Saltillo plant, laying off 480 people, and its Verona facility is up for auction.
In addition, the creditors and PBGC agreed on a liquidation plan, and if the proceeds are more than $20 million, minus fees and other expenses, then 20 percent of the PBGC’s share will be made available to unsecured creditors.
A hearing will be held April 28 on the settlement.
The PBGC protects more than 42 million private-sector pension holders, including 1.5 million people in failed pension plans. Funding is provided by insurance premiums, investment income and assets and recoveries from failed pension plans.
- Click to email this to a friend (Opens in new window)
- Click to print (Opens in new window)
- Click to share on Twitter (Opens in new window)
- Click to share on Facebook (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to Press This! (Opens in new window)
- Click to share on Google+ (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to share on Pinterest (Opens in new window)
About Floyd Ingram
- Sundancer crosses 2016 Solar Car Challenge finish line July 23, 2016
- Culinary arts teacher opens up new world for students July 24, 2016
- Walker takes second at Pros of Tomorrow July 24, 2016
- Scott, Hardin honored by ICC July 24, 2016
- Fire burns Thorn home Sunday July 25, 2016
- Eaton Automotive finishes season July 26, 2016
- Weston Reed Foundation to offer free physicals July 26, 2016
- ETHAN TURNER: A note to the fans July 26, 2016
- Cunningham earns ICC scholarship July 25, 2016
- Shearer-Richardson announces expansion July 25, 2016
- Jim Garth Horn: Did I miss it or is there anywhere in the article ...
- Americasgone: They have a "no guns" sign on their door. If the...
- Americasgone: This has to be a joke. They have good employees an...
- Jessica Lacy: Leadershipprovides with the opportunity to lead. E...
- a: Cars with tags from 12 different counties can rout...
- RT @wcbiweather: The heat index has surpassed 100 in many spots today. Stay cool out there! #mswx #alwx #wcbi http://t.co/Lt2LRZTDcm 3 years ago
- RT @dennisseid: OSHA: 24 work-related deaths in Miss. last year http://t.co/lgEYYtK7ZR 3 years ago
- Speech pathologists work to better communication skills | Monroe Journal http://t.co/lyHLvb0OS1 3 years ago
- Mumford & Sons bassist has blood clot on brain http://t.co/4xNLMhxaif 3 years ago
- Mobile home fire claims one | Itawamba Times http://t.co/FHouwxbnsp 3 years ago