Tag Archives: Pension Protection Fund

The deconstruction of Carillion

On 15 January 2018, Carillion, the UK’s second-largest builder and one of the Government’s largest contractors, was placed into compulsory liquidation and the Official Receiver was appointed as liquidator, with Michael John Andrew Jervis, David James Kelly, David Christian Chubb, Peter Dickens, David Matthew Hammond and Russell Downs of PwC being appointed as special managers … Continue Reading

The woes of Toys R Us – will the “magical place” have its Christmas dreams come true?

“There’s a magical place, we’re on our way there, with toys in their millions, all under one roof – it’s called… Toys R Us!” The lyrics resonate with millions worldwide. The advert is as iconic as Coca Cola’s “Holidays Are Coming” commercial or the Sainsbury’s “Christmas is for sharing” World War 1 cinematic ad. Sadly, … Continue Reading

PPF updates guidance for restructuring and insolvency practitioners

Since its inception in 2005, the PPF has been a welcome safety net for employees whose company pension scheme is in deficit and the sponsoring employer is on the verge of insolvency. The PPF’s major challenge has been preventing employers from deliberately engineering or recklessly creating such deficits in the pension scheme (to the benefit … Continue Reading

Financial services and not-for-profit firms should consider new PPF proposals on insolvency risk scorecards

The Pension Protection Fund (PPF) is reviewing its insolvency risk model with Experian. The proposals being considered are particularly relevant to the financial services and charity sectors. It is proposed they be introduced from 2018/2019 (and will not be part of the draft levy rules and levy estimate for 2017/18, which we expect will contain few … Continue Reading

Tata Steel and proposed changes to pensions legislation- a watching brief for the insolvency world

Over the past few months, we have commented on the steel industry crisis and some of the employment law issues arising from it in the context of insolvency. The article written by our Pensions team here discusses the Government’s proposals to assist the British Steel Pension Scheme and its struggling principal employer Tata Steel, one of … Continue Reading

Pension Issues On Corporate and Personal Insolvency

Unless you have been hiding in an igloo in Antarctica for the last year you could not possibly have missed the media furore over the huge pension liabilities of eminent companies that have become insolvent. BHS, a venerable British retailer, is the most high profile after recently entering administration with an estimated pensions deficit of … Continue Reading

Sunny side up or sunny side down (what is it with pension liabilities . . .)?

The latest iteration of the Sun Capital litigation has confirmed once again what many restructuring professionals have known for a long time – that pension liabilities have a nasty habit of kicking investors where it hurts, often when least expected. Our recent blog explains the decision and provides some insights on the case. One of … Continue Reading

Are you a Person with Significant Control – and why does it matter?

From April 2016 companies and limited liability partnerships (“LLPs”) (except for publicly traded companies) will be required to create and maintain a register of persons with “significant control” over the company (“PSC Register”) and in due course send that information to Companies House where it will be publically searchable. What’s the purpose of the new … Continue Reading

Pension Protection Fund Issue New Pre-Pack Administration Guidance

New guidance from the Pension Protection Fund (PPF) regarding pre-packaged administrations (pre-packs) outlines their approach to pre-packs when the same insolvency practitioner (IP) proposes to continue as office holder in any subsequent liquidation or company voluntary arrangement (CVA). The PPF has long highlighted the risk that a pre-pack can often be used to avoid a … Continue Reading

Taking it to the Wire – PPF deny Rogue’s Charter?

In February this year, Squire colleagues Paul Muscutt and Helen Kavanagh wrote about the Carrington Wire Defined Benefit Pension Scheme, where  the UK Pensions Regulator accepted a payment of £8.5m to settle warning notices of £17.7m issued to Russian companies that had guaranteed sums due from Carrington Wire to the Scheme (“the Guarantee”). For the previous blog and background to the Carrington Wire … Continue Reading

Pension Protection Fund – new guidance on Insolvency Practitioner fees

The UK’s Pension Protection Fund (PPF) is about to publish new guidelines to reflect their increased focus on the approval of Insolvency Practitioner’s (IPs) fees. The guidelines require IPs to provide more regular detail of accruing and anticipated costs to the PPF when they are appointed over employers where Defined Benefit (Final Salary) pension schemes … Continue Reading
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