PBGC Cuts Sears Pension Deal – $500M For Pensions, Sears Can Sell More Assets
By Doug Cunningham
The Pension Benefits Guaranty Corporation (PBGC) has reached a new agreement with Sears that will put $500 million into two Sears pensions plans that have approximately 100,000 people in them.
The deal frees the struggling Sears from having to protect subsidiaries holding real estate and intellectual property for the benefit of the pension plans.
The deal is expected to take a few months to close. When it does Sears will be free to sell off more of its assets. Sears has been losing billions of dollars in recent years.