Further to a Glassonline report two weeks ago, Mexico“s Vitro, the parent company of Anchor Glass Container Corp. of the US has agreed to assume some responsibility for the company“s underfunded pen…
Further to a Glassonline report two weeks ago, Mexico“s Vitro, the parent company of Anchor Glass Container Corp. of the US has agreed to assume some responsibility for the company“s underfunded pension plans, which should clear the way for the sale of the Florida-based glassmaker. Vitro has agreed to guarantee an unspecified amount of the funds in the event one of the acquiring companies cannot meet its obligations. In January, the US Pension Benefit Guaranty Corp. had delayed Anchor“s sale by threatening to take over company pension plans which cover 15,600 Anchor workers and retirees. The federal agency, which insures Anchor“s and other private pension plans, maintained that Anchor“s plans were underfunded by US$ 185 million, a figure Vitro disputed. The agency does not believe the company that is acquiring the bulk of Anchor, Consumers Packaging Inc. of Ontario, Canada, has the financial strength to sustain Anchor“s pension plans. It wanted Vitro to retain responsibility for the pension funds even after the company was sold. According to James R. Malone, chairman of Anchor Glass, Vitro has agreed to make up a “finite number with a cap on it” of the shortfall in the funds should Consumers fail to cover them. Although a firm agreement has not been reached, “I just don“t see it as an issue anymore,” Malone said. He expected the deal to sell Anchor to be concluded in early February.