PBGC Says RG Steel Parent Hid Deal To Duck $97M Bill

Law360, New York (January 29, 2013, 7:50 PM ET) -- The Pension Benefit Guaranty Corp. slammed private investment company Renco Group Ltd. with a lawsuit on Monday in New York federal court, claiming it lied about its plans to sell a stake in now-bankrupt RG Steel LLC to a private equity firm in order to duck $97 million in pension liabilities.

The government insurer claims that Renco convinced it not to terminate RG Steel's pension plans as the steelmaker careened toward bankruptcy in early 2012 while plotting all along to sell a 25 percent stake in...
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