UK protection fund says long way to go for T&N
UK – The Pension Protection Fund says it has not yet received an official application from the administrators of the Turner & Newall pension scheme following a £250m (€366m) injection into the scheme.
“There’s still a large number of steps to go through to deliver the deal,” said PPF spokesman Paul Reynolds. He told IPE there had been no application for entry to the PPF as yet and no secondary insolvency.
An application to the PPF would be followed by an assessment period of at least one year, he added.
The PPF has become involved in the negotiations - as a contingent creditor - between administrators Kroll, scheme trustee Alexander Forbes and T&N’s US owners. Reynolds pointed out that parent firm Federal Mogul, which is controlled by financier Carl Icahn, originally offered to inject £60m.
“That’s a significant recovery for the pension fund,” he said.
“The Pension Protection Fund’s sole aim in the negotiations has been to maximise the assets of the pension scheme, and has agreed in principle to a deal that provides for prompt payment of a certain and very significant sum of cash for the pension scheme,” the PPF said in a statement.
“Other options such as liquidation would have resulted in an uncertain return for the pension scheme.”
“This is one of the most complex restructurings ever undertaken and the signing of an agreement in principle moves it further towards a successful conclusion and the eventual exit from Administration and the payment to creditors,” said joint administrator Simon Freakley.
The Amicus union welcomed the deal as helping to safeguard UK jobs.