Parmalat USA, Pension Benefit Guaranty differ over funding for Farmland Dairies' pensions

By Jeff Pines

Washington, Sept. 15 - The Pension Benefit Guaranty Corp. believes Parmalat USA Corp.'s Farmland Dairies LLC's pension plans are underfunded and requires nearly three times as much as Parmalat USA is asking to put in.

Pension Benefit Guaranty filed its response with the U.S. Bankruptcy Court for the Southern District of New York on Wednesday.

Parmalat had filed a motion on Sept. 13 asking the court for permission to pay $1.5 million in premiums and gave interested parties only 48 hours to reply, Pension Benefit Guaranty said.

As a result, the federal pension insurer said it has not had sufficient time to thoroughly review Parmalat's brief, but Pension Benefit Guaranty said according to its figures, Parmalat would need to kick in nearly $4 million to properly fund the plans.

Pension Benefit Guaranty has filed claims for the unfunded amount.

Parmalat filed for bankruptcy on Feb. 24, 2004. Its Chapter 11 case number is 04-11139.

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