Collins & Aikman Corp.

Detroit, MI: (Apr-16-07) The Pension Benefit Guaranty Corp. (PBGC) brought charges against Collins & Aikman Corp., a Southfield, MI based auto parts maker, over a potential claim totaling $192 million in connection with funding obligations for its pension plan. Collins & Aikman said it stopped making minimum funding contributions to the plan in July 2006 resulting in $8.1 million in missed payments. The company has been operating under Chapter 11 protection through the US Bankruptcy Court in Detroit since May 2005 and is seeking approval of the pact, which plays a key role in the company's plan to pay creditors. In a settlement reached, Collins & Aikman agreed to a $96 million settlement with the PBGC. Currently the plan has some $253 million in assets to pay more than $430 million in projected benefits. [HOUSTON CHRONICLE: PENSION PAYMENTS]

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Published on Apr-17-07