Global Home Products $8.75 million PBGC claims settlement approved

By Caroline Salls

Pittsburgh, Dec. 5 - Global Home Products, LLC obtained court approval of an $8.75 million settlement agreement between its former subsidiary Anchor Hocking CG Operating Co. LLC and the Pension Benefit Guaranty Corp. (PBGC), which slices the amount of PBGC administrative and priority claims by 65%, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the conflict revolves around the involuntary termination of a pension plan that was sponsored by Anchor Hocking. PBGC guaranteed certain benefits under the plan.

Both parties have been in disagreement over the allowance of PBGC's various claims in the Chapter 11 cases. PBGC has contended that it deserves more while Global Home disagrees.

Under the settlement, PBGC will be given a $912,347 allowed administrative claim and a $7.84 million allowed non-priority general unsecured claim.

The settlement also provides for mutual general releases for the parties.

Global Home Products is a Westerville, Ohio-based designer, marketer and manufacturer of branded consumer and specialty products to retail and hospitality customers and original equipment manufacturers. The company filed for bankruptcy on April 10, 2006. Its Chapter 11 case number is 06-10430.

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