The Pension Benefit Guaranty Corp. is pulling rank in its effort to get LTV to fund its three pension plans. On Aug. 12, the PBGC ordered LTV to immediately make scheduled contributions to its plans. LTV, which is in Chapter 11 reorganization, suspended the payments after its creditors objected.
Those creditors contend that the PBGC has an unfair advantage over others with claims on LTV's assets. In response to their opposition, LTV has agreed not to continue to fund the plans without their approval. Now, it's up to a federal court in New York to decide whether to require the payments.