The Court of Appeal has ruled that pension scheme liabilities are prioritised over other unsecured claims when companies collapse.
The case concerns Lehman Brothers and Nortel. The collapsed firms have pension scheme liabilities of £148m and £2.1bn respectively. Lehman and Nortel have been fighting the Pensions Regulator (TPR) over scheme trustees' ability to supercede other claims on assets emerging from the insolvency of a company. This morning's judgement in London upheld a high court decision made in December 2010 in favour of TPR. The case is expected to go on to the Supreme Court. PwC partner Jonathon Land advised the Nortel pension plan trustees on the case. He said: "Today's Court of Appeal ruling ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
