Plastics Manufacturer Must Complete Pension Plan Transfer

A Delaware state court ordered Berry Plastics Corp. to complete a pension plan transfer from Rexam Inc. in accordance with an equity purchase agreement between the two companies (Rexam Inc. v. Berry Plastics Corp., 2015 BL 398040, Del. Ch., C. A. No. 10596-VCN, 12/3/15).

Vice Chancellor John Noble ruled Dec. 3 that the Pension Benefit Guaranty Corporation’s inquiry into the pension transfer wasn’t enough to invoke a provision in the purchase agreement that nullified the transfer if there was “pending or threatened” action by the PBGC.

In March 2014, Berry Plastics agreed to purchase Rexam’s Healthcare Containers ...