According to the U.S. Bankruptcy Court, Molycorp filed a second motion to authorize pension contributions to a legacy defined benefit pension plan.
The motion explains, “The Pension Plan is an ERISA-qualified defined benefit plan, the costs of which are paid by the Company. The Pension Plan eliminated any ongoing benefit accruals prior to the Petition Date; no party is accruing further benefits under the Pension Plan for work they presently are performing for the Debtors. As such, the Debtors believe that all funding obligations relating to the Pension Plan are prepetition obligations of the Company.”
Court-filed documents continue, “The Debtors are now required to make two additional ordinary course cash contributions to the Pension Plan: (i) a Quarterly Contribution in the amount of $59,988 (plus any accrued interest) for the third quarter of 2015 and (ii) a Quarterly Contribution in the amount of $59,988 (plus any accrued interest) for the fourth quarter of 2015….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 November 16, 2015 hearing, with objections due by November 5, 2015.
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