PTC Alliance eyes retiree committee amid proposed benefit cuts

By Caroline Salls

Pittsburgh, April 29 - PTC Alliance Corp. asked the U.S. Bankruptcy Court for the District of Delaware to appoint a committee of retired employees for its bankruptcy case, according to a Thursday court filing.

The company is also seeking acknowledgement that the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC is the authorized representative for PTC retirees receiving benefits under a collective bargaining agreement.

To meet conditions of its asset sale agreement, the company said it must implement cost reductions in connection with its retiree benefits for both union and non-union retirees.

During 2009, PTC Alliance said the total annual expense of the retiree benefits was $3.5 million, and the company expected a similar expense for 2010.

As of the bankruptcy filing date, the company said its estimated long-term liability for retiree benefits would total more than $40 million.

As a result, PTC Alliance said it is seeking the committee appointment and representative acknowledgment. The committee would represent retirees whose benefits are not covered under a collective bargaining agreement.

PTC Alliance is a Wexford, Pa., manufacturer and marketer of welded and cold drawn mechanical steel tubing, fabricated parts and precision components and chrome-plated steel bars. The company filed for bankruptcy on Oct. 1, 2009, and its Chapter 11 case number is 09-13395.

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