PBGC Balks At Nutritional Sourcing Liquidation Plan

Law360, New York (July 7, 2009, 12:00 AM EDT) -- The Pension Benefit Guaranty Corp. has objected to Nutritional Sourcing Corp.’s latest plan of liquidation and disclosure statement, claiming the debtor has failed to justify proposed releases of liability in connection with unfunded employee pension plans.

On Monday, the agency lodged an objection in the U.S. Bankruptcy Court for the District of Delaware as a precaution to ensure that the debtor provides retirement benefits to over 2,000 grocery store employees of subsidiary Pueblo International LLC.

The pension plan for Pueblo currently carries unfunded benefit liabilities of...
To view the full article, register now.