TPR versus Lehman and Nortel in landmark court case

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A landmark court case starting today could set a precedent for pension funds to take priority over other debts during bankruptcy.

The case centers around collapsed investment bank Lehman Brothers and communications company Nortel, both of which are challenging The Pensions Regulator's (TPR) attempts to recoup funds. Lehman's pension deficit was £148m when it filed for bankruptcy in 2008, whilst Nortel's was £2.1bn when it went bust in 2009. Prioritising pension funds in this way would reduce the amount companies have left to pay off other debts. This would include administrators like PwC, which has already received £262m from Lehman's European arm since 2008. The case will open in the chancery division of the...

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