The opening of safeguard or reorganisation proceedings does not automatically terminate a current agreement notwithstanding any contractual clause providing for termination.
Termination by a lessor
Background
The crisis exit treatment procedure has been introduced to provide a temporary judicial procedure for debtors encountering difficulties related to the pandemic and the financing of their activities. This excludes debtors that are structurally in distress.
The procedure enables debtors to adopt a repayment plan within a three-month period to resolve the company's financial difficulties. The procedure is subject to the rules governing judicial reorganisation proceedings with certain adaptations and exclusions.
On 1 October, Ordinance 2021-1193 introduced changes to the 'accelerated safeguard' procedure making this the 'preventive restructuring framework' as required by the 2019 Directive.
Certain conditions for the opening of an accelerated safeguard procedure have been retained with some modifications:
Welcome to the results of our third annual Pensions in Restructuring Survey.
This year's survey gathers views on the issues with pensions in corporate restructuring, with a particular focus on the points arising from the Department for Work and Pensions' recent white paper, "Protecting Defined Benefit Pension Schemes".
Key Points
- Interpretation of EU case law on protection of pension payments on employer insolvency not “entirely free from doubt”
The Facts
The claimant (C) was a member of the T&N defined benefit pension scheme from 1971 to 1998. In 2006, the scheme entered a PPF assessment period and C calculated that his pension under the PPF would, as a result of caps and limitations on indexation, be roughly 67% less than what he had previously expected.
In the November 2013 edition of Pensions Pieces we referred to the Olympic Airlines case where a UK pension scheme could not qualify for entry to the Pension Protection Fund ('the PPF') because its sponsoring employer was suffering main liquidation proceedings in Greece, and further insolvency proceedings could not be established to satisfy the current entry conditions