Pension Benefit Guaranty Corporation (PBGC) will acquire the defined benefit plan of Wolverine Tube. The pension plan will cover $106.3 million of its liabilities, while PBGC will cover $79.6 million.
PBGC will get a 5% equity stake in Wolverine Tube and about $13 million in cash. The acquisition is part of the Chapter 11 restructuring of Wolverine Tube approved by a U.S. court. With the move the company will exit bankruptcy.
Click here for the release from PR Newswire.