PBGC Sues the Renco Group Over RG Steel Unfunded Pension
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The Pension Benefit Guaranty Corp. sued the Renco Group Inc. over $97.2 million in unfunded pension liabilities at its bankrupt RG Steel LLC unit, once the fourth-biggest U.S. flat-rolled steelmaker.
The agency claims Renco deceived it in January 2012 when it was ready to terminate the pension plans. Renco executed a financing transaction that month with an affiliate of Cerberus Capital Management LP in an effort to avoid the financial obligations of the former steel-maker’s pension shortfall, according to a complaint filed today in federal court in Manhattan.