DAYTON (AP) -- Huffy Corp. said Tuesday it plans to have the federal government take over paying its retirement benefits and has reached an agreement on reorganization that would give Huffy's Chinese suppliers controlling interest in the company.
The 117-year-old bicycle and sporting goods company filed for reorganization under Chapter 11 of the federal bankruptcy code in October, citing losses largely from a Canadian sports equipment company. The company currently has 130 workers.
Huffy said that under its agreement in principle, the Sinosure Group -- which consists of Chinese suppliers and the China Export & amp; Credit Insurance Corp. -- would elect a majority of Huffy's board of directors.
Huffy also said it plans to file a motion with the bankruptcy court terminating its pension plan. It said the Pension Benefit Guaranty Corp. would take over the responsibility of paying out benefits.
Huffy has about 3,600 retirees.