In any insolvent or distressed situation, a defined benefit pension scheme becomes a very large creditor (often the largest).
Although usually unsecured, the ‘moral hazard’ powers of the Pensions Regulator make it an important party to any restructuring process. Employers, trustees, insolvency practitioners and creditors need to understand the complex law around pensions and insolvency. Arc Partner Rosalind Connor covers many of these complexities in her Practitioners Guide to Pensions and Corporate Insolvency. The team at Arc Pensions Law have been advising on restructuring since before the present regime was introduced in 2005, and have since advised on a large number of leading transactions. We advise on matters including:
- preparing proposals from the employer to the trustees, the Regulator and the PPF and managing the process effectively
- advising trustees where the employer is in distressed or insolvent circumstances, dealing with their changing obligations and issues
- working with lenders to protect their position in distressed circumstances where the PPF or trustees of a pension scheme are involved, and
- advising insolvency practitioners on the pensions law and practice relating to their appointments.