PRECEDENT SET AS JUDGE RULES ON LANDMARK PENSION’S CASE
On the 19th September 2008, a US bankruptcy judge gave his judgment on a landmark pension case – Sea Containers. He approved the settlement that the trustees of both pension schemes had agreed with the two Sea Containers companies which are going through Chapter 11 proceedings. By this, he recognised the role of the Pension Regulator and the validity of the Financial Support Directions, issued in February 2008.
The judge concluded that the buy out basis as applied in the UK is the most appropriate basis of valuing the trustees’ claims, rather than any basis applying in the US.
Capita ATL Pension Trustees Limited acts as trustees of the Sea Containers 1983 Pension Scheme and the Sea Containers 1990 Pension Scheme. As part of the process, both Jane Fryer and Rosemary Kennell representing the schemes on behalf of Capita, were deposed by the US Bankruptcy Court.
Capita continues to work pro-actively on both these schemes thus ensuring that the best interests of the UK scheme members are protected.