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The simple answer is that Company B adopts Company A's plan as the successor Plan Sponsor. Take a look at the Plan Document to determine if the prococess is prescribed somewhere in the language of the document. Some pre-approved plans incorporate elections for a successor sponsor. If you're not sure, talk to the document provider, they should be able to guide you further.

If he terminated 1/31/2013 he has first distribution year of 2013 with a RBD no later than 4/1/2014. So yes, I would agree that he needs an RMD before any other distribution can be processed.

"Encourage"? Not really. I had a similar situation once - where the "defendant's" attorney convinced the guy that it would show the judge "remorse" which might bode well for him at his sentencing. I worked for the trustee at the time, showed up at the sentencing hearing with distribution paperwork and check in hand. Before the hearing, he signed the paperwork and I gave him the check. End of story for the trustee (but I stuck around to see what happened). He signed the back of the check over to the company as partial restitution. Didn't sway the judge (he got 15 years in Lucasville - Ohio's rather notorious Big House - and there was a decided odor in the room when he was sentenced). Part of the sentence was also to make restitution (of which his 401(k) distribution was about 8% of what he stole). Signing over his balance may not be bad in the eyes of a parole board (but also may subject his or her family to financial hardship). Good luck!