International Corporate Rescue
Journal Issues
- Vol 1 (2004)
- Vol 2 (2005)
- Vol 3 (2006)
- Vol 4 (2007)
- Vol 5 (2008)
- Vol 6 (2009)
- Vol 7 (2010)
- Vol 8 (2011)
- Vol 9 (2012)
- Vol 10 (2013)
- Vol 11 (2014)
- Vol 12 (2015)
- Vol 13 (2016)
- Vol 14 (2017)
- Vol 15 (2018)
- Vol 16 (2019)
- Vol 17 (2020)
- Vol 18 (2021)
- Issue 1
- Issue 2
- Issue 3
- Issue 4
- Issue 5
- Issue 6
- Vol 19 (2022)
- Vol 20 (2023)
- Vol 21 (2024)
Vol 18 (2021) - Issue 4
Article preview
Virgin Territory: What are the Implications of Restructuring Plans for Defined Benefit Pension Schemes?
Samantha Brown, Partner, John Whiteoak, Partner, and Philip Lis, Senior Associate, Herbert Smith Freehills LLP, London, UKSynopsis
The judgment in Re Virgin Active Holdings Limited [2021] EWHC 1246 has empowered the use of restructuring plans under Part 26A to the Companies Act 2006 ('RPs') to compromise the rights of unsecured creditors based on evidence that they would receive little or no return on an insolvency – i.e. that they are 'out of the money'.
This is potentially significant for defined benefit pension schemes ('DB Schemes'). Whilst RPs may weaken the whip hand of DB Scheme trustees and the Pension Protection Fund in restructurings, there remain significant hurdles and potential risks to companies seeking to compromise pension liabilities without trustee consent.
Get instant access to this article for only EUR 55 / USD 60 / GBP 45
Get instant access to this issue for only EUR 175 / USD 230 / GBP 155
Subscribe to the journal and recieve a hardcopy for
EUR 730 / USD 890 / GBP 560
log In here
Copyright 2006 Chase Cambria Company (Publishing) Limited. All rights reserved.
