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Molycorp Pension Authorization Sought

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According to the U.S. Bankruptcy Court docket, Molycorp filed a third motion to authorize pension contributions to a legacy defined benefit pension plan.

The motion explains, “The Debtors are now required to make an additional ordinary course cash contribution to the Pension Plan for the first quarter of 2016 in an amount no greater than $70,000 (plus any accrued interest).

The motion continues, “The Debtors seek entry of an order, pursuant to sections 105(a) and 363(b) of the Bankruptcy Code, authorizing the Debtors to make the Pension Contribution in an amount not to exceed $70,000….Making the Pension Contribution is in the best interests of the Debtors’ estates. Such payments are required by ERISA, as amended by the Pension Protection Act, 26 U.S.C. section 430(j) and 29 U.S.C. section 1083 and, if the Company fails to make the required payments, significant interest and liens potentially could be imposed. Perhaps more importantly, a continuing failure to meet minimum funding standards can provide grounds for the Pension Benefit Guaranty Corporation (the ‘PBGC’) to seek an involuntary termination of a pension plan.”

The Court scheduled a March 28, 2016 hearing to consider the motion, with objections due by March 17, 2016. Read more Molycorp bankruptcy news.

The post Molycorp Pension Authorization Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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