A financial support direction issued by The Pensions Regulator against insolvent companies is an expense of the administration and must be complied with, the High Court has ruled.
As a result the trustees of the Nortel Networks and Lehman Brothers pension schemes have been given ‘super priority' in obligations arising from FSDs issued against their parent companies by the regulator. The court was asked by administrators for Nortel and Lehman Brothers to determine what obligations are imposed on a company by an FSD issued after the company has gone into administration or liquidation - and how any such obligation will be treated in relation to the company's other creditors. The court ruled in a[asset_library_tag 2373, judgment] handed down this morning in the Hig...
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