FOR IMMEDIATE RELEASE
April 1, 2011
WASHINGTON-Delphi Automotive LLP has redeemed the Pension Benefit Guaranty Corporation's stake in the company for $594 million, the agency announced today.
PBGC originally obtained its interest in Delphi Automotive in partial settlement of its claims stemming from the 2009 termination of pension plans of the bankrupt company. Since 2009 PBGC has been responsible for paying pension benefits to some 70,000 Delphi workers and retirees.
The Delphi pension plans were underfunded by about $7 billion and PBGC has taken responsibility for $6.1 billion, making it the second largest financial loss in the agency's 36-year history.
PBGC doesn't know how this action will affect benefits. PBGC will inform Delphi retirees of their final benefit amount as soon as the complex calculation process is complete.
Press Release Number: 11-37