4 May 2021: Argyll opens Leeds office

17 Jun 2020: TPR updates Contribution Deferral guidance

5 Aug 2019: TPR's tougher stance on recovery plans

7 Mar 2019: TPR’s Annual Funding Statement a game-changer

7 Dec 2018: DWP publishes superfund consultation

26 Jun 2017: TPR agrees settlement with Coats

30 Apr 2017: PM promises TPR M&A powers

28 Feb 2017: TPR agrees settlement with Sir Philip Green

9 Nov 2016: Brexit so far

8 Nov 2016: BHS ripple effect

2 Nov 2016: Sir Philip Green sent warning notice

1 Nov 2016: Argyll Financial becomes Argyll Covenant

3 Oct 2016: Tata Steel update

2 Jun 2016: BHS to be liquidated

29 Mar 2016: Tata plans sale of UK Steel

3 Sep 2015: TPR takes dim view of late valuations

13 Aug 2015: New TPR covenant guidance

28 May 2015: Contribution notice in Carrington Wire case

22 Dec 2014: Third warning notice for Guinness Peat

18 Dec 2014: New PPF rules for Asset-Backed Contributions

19 Aug 2014: TPR announces Lehman Brothers settlement

10 Jun 2014: TPR publishes revised funding code

27 Mar 2014: EC postpones holistic balance sheet

20 Mar 2014: PPF announces new insolvency risk model

17 Mar 2014: PPF guarantees harder to certify

7 Feb 2014: Argyll Financial submits consultation response

2 Dec 2013: Regulator publishes new draft funding code

19 Nov 2013: Asset-backed contributions guidance from TPR

22 Oct 2013: FSD warning helps MF Global scheme buyout

10 Sep 2013: TPR supportive of Kodak restructuring

31 Jul 2013: Schneider Electric acquires Invensys for £3.4bn

24 Jul 2013: Supreme Court overturns FSD super-priority

8 May 2013: Support for employers in TPR's Statement

19 Aug 2014: TPR announces Lehman Brothers settlement
TPR announced today that a £184m settlement agreement has been reached meaning full benefits will be paid to members and PPF entry will be avoided.  The settlement has taken 6 years to reach following an investigation that began in 2008.
The investment bank filed for Chapter 11 protection in the US on 15 September 2008, following billions of dollars of losses from its holdings of sub-prime mortgage-backed securities.  The filing triggered the insolvency of the majority of the group including the Scheme sponsor and other UK operating entities, leaving the UK pension scheme without ongoing support.
In September 2010, the Determinations Panel determined that six companies in the Lehman Brothers Group should receive Financial Support Directions.  Following an appeal to the Upper Tribunal, several legal challenges and an appeal to the Supreme Court in July 2013, the parties have now agreed that certain companies would pay the cost of buying out benefits with an insurer.

Argyll Financial comment:  This is a welcome decision for pension scheme members.  The court processes in this case have also clarified some key points regarding FSDs:
  • FSDs are effective against insolvent targets and liabilities under them rank as provable debts, equally with other unsecured creditors
  • FSDs can be issued to multiple companies which amount in aggregate to more than the buyout debt even though the overall recovery will be limited to that debt
One issue that remains unresolved however is the extent to which TPR can enforce overseas.

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