The PBGC has announced that the agency and Daimler have agreed to a $600 million dollar cash infusion into the Chrysler pension plan.
Document Excerpt
WASHINGTON—The Pension Benefit Guaranty Corporation (PBGC) today announced a term sheet agreement with Daimler AG on additional protections for the pension plans of Daimler’s former Chrysler North America division.
Under the agreement, also signed by Chrysler and its controlling owner, Cerberus, Daimler will contribute $200 million dollars into the pension plans immediately upon final execution of the agreement. Daimler also will pay $200 million into the plans in 2010 and again in 2011.
In addition, if the Chrysler pensions terminate before August 2012 and are trusteed by the PBGC, Daimler will pay $200 million to the PBGC insurance program. The agreement replaces the $1 billion termination guarantee negotiated by the PBGC at the time of Daimler’s sale of Chrysler in 2007.
Link http://www.pbgc.gov/media/news-archive/news-releases/2009/pr09-21.html
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