PBGC Vows To Fight For Friendly's Pension Plan

Law360, New York (October 13, 2011, 5:40 PM EDT) -- The Pension Benefit Guaranty Corp. on Thursday vowed to fight an alleged bid by private equity firm Sun Capital Partners Inc. to cancel the pension plan for the bankrupt Friendly's restaurant chain's 6,000 workers and retirees.

The agency said Sun Capital, the private equity owner of Friendly Ice Cream Corp., was wrongfully trying to use the Chapter 11 asset auction process to abandon the pension plan for Friendly's employees while keeping its ownership of the chain.

"It looks like [Friendly] and Sun Capital are trying to...
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