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Financial support directions and insolvency part 2 - the Court of Appeal

2011-10-18

As you may recall, the High Court ruled in December 2010, in a case brought by the administrators of 20 insolvent companies in the Lehman and Nortel groups, that the cost of complying with a financial support direction ("FSD"), issued by the Pensions Regulator after the date of the commencement of a company's administration or liquidation, would rank as an expense of the administration or liquidation.

Filed under:

United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Reed Smith LLP, Unsecured debt, Debt, Liability (financial accounting), Liquidation, The Pensions Regulator (UK), Lehman Brothers, Pensions Act 2004 (UK), Court of Appeal of England & Wales, High Court of Justice (England & Wales)

Authors:

Emma J. Flacks , Marc Bergen

Location:

United Kingdom

Firm:

Reed Smith LLP

Financial support directions and insolvency – possible leverage for pension scheme trustees?

2011-01-21

In a recent high profile case brought by the administrators of 20 insolvent companies in the Lehman and Nortel groups, the High Court ruled that the cost of complying with a financial support direction (“FSD”) issued after the date of the commencement of a company’s administration or liquidation by the Pensions Regulator would rank as an expense of the administration or liquidation.