New Company Formed - Distributional event?

[tylerb172]

Company A Owns 60% and Company B owns 40% of Company C. The employees of Company B are no longer employee of Company B but now employee of Company C. Company B sponsored a 401k Plan previous. New Company C started sponsoring a 401k plan that allows rollovers. Both Company A and B still exist and neither have employees. All employees from A & B are now employees of Company C.

Do the employees of company B have a distributable event?

[Luke Bailey]

Need more information, I think. So Company A never had employees, and still doesn't? Company B had employees, but transferred them all to Company C when Company C was formed? Would need to make sure that A and B are not brother-sisters under 414(b) and/or (c), such that C could be in a controlled group with A and B. Why doesn't C just adopt B's plan and B unadopt?