PBGC Seeking Additional Contributions From Solo -- For Likely Pension Obligations At Closed Facility In Springfield, MO?

So, are the pensioners' cups, at the former Springfield, Missouri, Solo facility, half-full. . . or are they half-empty? That is what the Pension Benefit Guaranty Corporation -- a governmental entity -- is trying to decide.

From Solo Cup's second quarter 2011 SEC Form 10-Q, as amended, then -- at the middle of page 8:

. . .As a result of the closing of our Springfield, Missouri manufacturing facility in March 2011 (Note 2), we have entered into discussions with the Pension Benefit Guaranty Corporation regarding potential additional funding of the related defined benefit pension plan. . . .

This potential additional pension contribution liability -- which I admittedly completely missed, when it was first disclosed, last summer -- along with the completion of the auction process for the former Solo HQ in Highland Park, Illinois, maike it increasingly likely that Solo Cup will need a waiver of at least some of its bank debt covenenants, as of the end of this quarter. We shall see.