BUSINESS BRIEFING /
Times Wire Reports
Chrysler pension plans may be underfunded by more than $10 billion, the federal Pension Benefit Guaranty Corp. has estimated.
If the pensions are terminated, the agency’s claim for the shortfall in the automaker’s bankruptcy case “would exceed $9 billion,” Chrysler lawyers said in a filing in U.S. Bankruptcy Court in New York.
Chrysler is seeking approval of a settlement among the company, the pension agency, Cerberus Capital Management and Daimler to partly fund the plans and avoid a termination. Chrysler’s proposed sale would extinguish Daimler’s $1-billion guaranty securing the pensions, according to the filing.
