The U.S. Pension Benefit Guaranty Corp. (PBGC) has sued Renco Group Inc for $97 million, accusing it of trying to avoid the pension obligations of bankrupt steelmaker RG Steel LLC, Reuters reported today. Renco Group, founded by New York billionaire Ira Rennert, had a controlling interest in RG Steel, which had sponsored two pension plans for about 1,350 people. Last year, Renco sold 24.5 percent of its ownership stake in RG Steel to an affiliate of the New York-based investment firm Cerberus Capital Management before the steelmaker filed for chapter 11 protection. The PBGC said in the court filing that Renco had reduced its ownership stake in an attempt to free itself from RG Steel's pension obligations. It said in the filing that ownership of 80 percent or more in RG Steel would have made Renco responsible for the steelmaker's pension plans.
