Werner creditors committee get court OK of agreement with PBGC to resolve pension claims dispute

By Reshmi Basu

New York, Oct. 26 - Old Ladder Co. (DE), Inc., formerly Werner Holding Co. (DE), Inc.'s, official committee of unsecured creditors received court approval of a stipulation agreement with the Pension Benefit Guaranty Corp., or PBGC, which resolves a dispute over three claims filed against the company relating to its pension plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, PBGC filed a $27.2 million claim for unfunded benefit liabilities under Werner's retirement plan, a $5.27 million claim for unpaid minimum funding contributions due to the pension plan and an unliquidated claim for unpaid premiums relating to insurance, interest and penalties.

The parties entered into negotiations to end the conflict over the proper priority classification of the claims.

Under the stipulation agreement:

• The unfunded liability claim will be allowed in the amount of a $28 million unsecured, non-priority class 4 claim against Werner;

• The minimum funding claim will be allowed in the amount of a $7.58 million unsecured, non-priority class 4 claim; and

• The insurance premium claim will be withdrawn.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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