MUNCIE, Ind. — When Marsh Supermarkets filed for bankruptcy May 11, its largest creditor was an Illinois-based pension fund. Its second-largest creditor was a Connecticut-based pension fund.

The Hoosier supermarket chain acknowledged more than $82 million in unsecured claims to the two retirement funds.

Does that mean that hundreds or even thousands of people who worked for the Muncie-born grocery store chain over the decades run the risk of losing their pensions?

As with almost anything else in Marsh's bankruptcy process, the fate of employee pensions depends on what the court in the state of Delaware, where the bankruptcy was filed, decides.

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Bankruptcy judges will prioritize the claims of creditors, which include not only the two pension funds —Central States Southeast and Southwest Pension Fund of Rosemont, Illinois, which is owed $61,571,211, and Marsh Supermarkets PRIAC (Prudential Retirement), based in Hartford, Connecticut, which is owed $21,746,496 — but many suppliers and vendors.

Marsh spokesman Thomas Mulligan told The Star Press that the company currently has no comment on the issue of pensions.

Anita Cooper worked for Marsh for 37 years, at its Southway Plaza and Northwest Plaza stores in Muncie, among others, before finishing out her career in 2009 at the now-closed store at Broadway and McGalliard.

"We haven't heard anything," Cooper told The Star Press, who said her pension checks are still arriving regularly.

"Periodically, Marsh would send us a letter telling us how much was in the pension fund," she added. "It was always in the millions."

It's not yet possible to tell why more than $82 million in Marsh pensions are at the mercy of the bankruptcy court instead of being fully funded, Robert Kleine, interim director of Michigan State University's Extension Center for Local Government Finance and Policy, told The Star Press.

"I assume they've been under-funding their pensions if they're having financial problems," Kleine said. "I don't know if they've borrowed against it."

Financial companies like Central States and Prudential take pension funds and invest them but the rate of return in the market has been low, Kleine added.

The good news for Marsh retirees?

"Generally in bankruptcy, (pension funds) often move to the head of the line," Kleine said. "They could get some of this money depending on the court's ruling. It's possible that Central States (and Prudential) could get some or all of this money.

"In bankruptcy court, that's part of the proceedings, who gets what. Pensions generally come out better than other creditors, but at this point it's hard to say."

More possible good news for Marsh retirees is the Pension Benefit Guaranty Corporation, a government agency that protects employee pensions. PBGC is funded by insurance paid by companies, although it is unknown if Marsh has contributed toward that insurance.

If the pensions are first and second among creditors, the outcome for others owed money by Marsh is more uncertain. The third-largest creditor is grocery supplier Supervalu, of Eden Prairie, Minnesota, which is owed more than $8 million. The list of creditors goes down from there and includes vendors like Keebler, Coca-Cola. Frito-Lay and Pepsi-Cola and entities like the Delaware County treasurer's office, which is owed $277,360 in property taxes for Marsh locations in Muncie.

For current Marsh employees, a job fair has been set for Thursday, June 8 at the Downtown YMCA, 500 S. Mulberry St. The job fair will be held 10 a.m. to 1 p.m. and 4-6:30 p.m. on the second floor of the YMCA.

The job fair is "targeting Marsh employees," said Traci Lutton of the Muncie-Delaware County Economic Development Alliance.

Information and registration for employers that want to be present at the job fair: Nancy Norris at nnorris@muncie.com or 765-751-9151.

Contact Keith Roysdon at 765-213-5928 and follow him on Facebook and Twitter.