Alongside an announcement of a new role of Head of Restructuring, the Pension Protection Fund (PPF) has released new guidance on situations involving new or successor schemes.

The PPF approach will depend on the specifics of the restructuring and proposed successor scheme; The Pensions Regulator (TPR) is consulted on all cases.

This new guidance summarises the full guidance on the 'restructuring principles'

used by the PPF:

• The proposal should provide a significantly better return than an administration or liquidation and be proportionate considering the section 75 debt that is being eliminated.

• The PPF will seek at least 33% of the equity in the restructured company for the scheme. Should the future stakeholders (such as

shareholders/owners/debt providers) be entirely unconnected or involved with the company prior to restructuring, the PPF may agree to receive a smaller percentage but this will never be less than 10%.

• Creditors should be treated equitably and the scheme not be disadvantaged. In particular the PPF will look at connected and . . .

11 July 2019   Check other news items