PBGC Rips RG Steel Over $70M Pension Shortfall

Law360, Wilmington (June 14, 2012, 7:32 PM EDT) -- The Pension Benefit Guaranty Corp. entered the fray in RG Steel LLC's bankruptcy on Thursday, criticizing the steelmaker for shielding its parent from liability for a $70 million pension shortfall.

In a limited objection filed in Delaware bankruptcy court, the PBGC took issue with releases granted to parent The Renco Group Inc. in RG Steel's debtor-in-possession financing package. The agency believes it has "substantial claims" against Renco related to the steelmaker's pension plans and said there is "no basis whatsoever" for shielding the parent from liability...
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