The agency said it stepped in because the pension plans faced abandonment after the Lincolnshire, Illinois, maker of alloy extrusion products sold substantially all of its assets while in bankruptcy proceedings, and the buyer is unwilling to assume responsibility for the plans.
According to a PBGC announcement, the plans are:
- Indalex USA Pension Plan;
- Pension Plan for Employees of Aluminum Industry & Allied Industries of the Greater Youngstown, Ohio, Metropolitan Area — Indalex, Inc.— Girard;
- Pension Plan for Employees of Aluminum Industry & Allied Industries of the Greater Youngstown, Ohio, Metropolitan Area — Indalex, Inc. — Niles Extrusion; and
- Pension Plan for Employees of Aluminum Industry & Allied Industries of the Greater Youngstown, Ohio, Metropolitan Area — Indalex, Inc. — Niles Casting.
Collectively, the plans are 57% funded with $62.4 million in assets to cover $109.8 million in benefit liabilities. The PBGC says it will be responsible for $47.1 million of the $47.4 million shortfall.
Indalex filed for Chapter 11 protection because of financial difficulties brought on by the global economic slowdown, which spurred a drop in demand, earnings, and liquidity. On July 2, 2009, the company’s sale to Sapa holdings AB, a Swedish aluminum products maker, was approved. The transaction included 10 active plants in North America.