Administration Expenses and the rescue culture
The Lehman/Nortel pensions appeal is due to be heard by the Supreme Court on 13 May 2013. The High Court and the Court of Appeal decided that Financial Support Directions and Contribution Notices issued by the Pensions Regulator after the target company has gone into administration rank as administration expenses. Will the Supreme Court stop the erosion of the rescue culture and recognise such liabilities as unsecured?
My views on the current problems with the administration expense regime and potential solutions are shown in a recent webcast .
The higher courts may assist, but if not we will need legislation to make administration the constructive process envisaged by the Enterprise Act.
Date: 22nd April, 2013
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