Supreme Court overturns pension scheme 'super-creditor' status

The Supreme Court ruled financial support directions (FSDs) made by The Pensions Regulator were debts which rank alongside the claims of other unsecured creditors. This overturned a previous ruling which named them as ‘expenses of the administration' and therefore boosted their priority. The ruling in the long-running Nortel/Lehman case - concerned with the liabilities of the occupational pension schemes of both firms - was handed down this morning. Linklaters global head of restructuring and insolvency Tony Bugg, who advised the Lehman administrators, said the decision was "highly si...