Proving for Pensions – UK Supreme Court rules that secondary pensions liability imposed by the Pensions Regulator ranks alongside other unsecured creditors in an administration

The Supreme Court allows the Lehman and Nortel appeals in part declaring that secondary pensions liability imposed on target companies should and does rank as provable debt in an administration
A landmark judgment was handed down by the Supreme Court today, in which Weil represented Lehman Brothers Holdings Inc. and Neuberger Berman Europe Limited. It was decided that any pensions liability imposed on the Lehman and Nortel target companies pursuant to a financial support direction issued after an insolvent event is a provable debt, ranking pari passu with other unsecured debts in an administration or liquidation: “the sensible and fair answer”.
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