Law reversed on pensions liabilities in insolvency

The Supreme Court has reversed that decision in the same pair of cases arising out of the Lehman and Nortel insolvencies.

Market reCap October 2013 edition 

• Takeover code - further Code changes on profit forecasts
• Changes to companies subject to Takeover Code
• Primary Market Bulletin No.6 - updates to UKLA Knowledge Base
• EU's proposed new Market Abuse Rules are unveiled
• Abort fees in engagement letters - a case study
• Law reversed on pensions liabilities in insolvency

 

In brief

On 19 October 2011, we issued an update detailing the Court of Appeal decision that pension schemes will, in some cases, have to be paid before floating chargeholders, preferential creditors, unsecured creditors and even the administrators themselves, where companies become insolvent. The Supreme Court has reversed that decision in the same pair of cases arising out of the Lehman and Nortel insolvencies.

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