Private Equity CEO Who Reneged On Pension Benefits To Host Fundraiser For Romney

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"Private Equity CEO Who Reneged On Pension Benefits To Host Fundraiser For Romney"

Sun Capital Co-CEO Marc Leder

2012 presumptive Republican presidential nominee Mitt Romney is making a fundraising swing through Florida. Today, one of Romney’s events — a $50,000 a plate dinner — will be hosted by private equity guru Marc Leder.

Leder, co-CEO of the private equity firm Sun Capital, was inspired to get into the private equity business during a visit to Romney’s former private equity firm, Bain Capital. And Sun Capital has a reputation for bankrupting companies in the pursuit of profit. In fact, “since 2008, some 25 of its companies — roughly one of every five it owns — have filed for bankruptcy.”

Not only that, but the company was accused by the federal Pension Benefit Guaranty Corporation (PBGC) just a few months ago of intentionally pushing a company into bankruptcy in order to avoid paying workers’ pensions:

Sun Capital Partners, a Florida private equity firm, illegally transferred assets from the ice cream chain and its parent company responsible for the pension plans to another Sun affiliate shortly before the October bankruptcy filing, according to allegations in court records filed by the Pension Benefit Guaranty Corp. [...]

If Sun Capital and its affiliates are successful, it will allow them to shed more than $100 million in pension liabilities, yet retain control of the ice cream business, according to the agency.

Romney, of course, oversaw Bain, which also had a penchant for ditching pension benefits when it meant bigger returns for investors. The PBGC, in fact, bailed out one steel plant after Bain left its pension plan underfunded by $44 million.

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