Nortel and Lehman Brothers case on FSDs decided — a workable way forward
By Heather Chandler
The case involved two groups (the Nortel group and the Lehman group) each of which contained occupational pension schemes with substantial funding deficits.
The Pensions Regulator (PR) had issued financial support directions (FSDs) to the group companies, in both cases following the placement of the group into administration. An FSD is a direction from the PR where the employer supporting a scheme is either a service company or insufficiently resourced, requiring another person(s) to connect with that employer to make financial arrangements to support the scheme.
The question to the court was whether the costs of complying with the FSDs (and any subsequent contribution notice) constitute a provable debt or an expense of the insolvency, or are not recoverable at all. Where an FSD is issued before insolvency, it was common ground the liabilities under it would constitute a provable debt in the recipient’s subsequent insolvency…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
On 10 January 2015, new EU rules on jurisdiction and enforcement of judgments in civil and commercial matters came into effect as a result of the Brussels Regulation (recast).
The FCA’s new business plan reveals that financial crime is now one of its most important areas of focus.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…