Nortel – Financial Support Direction under Pensions Act 2004
On 8 July 2010 the Determinations Panel of the Pensions Regulator decided to issue a Financial Support Direction (FSD) under the Pensions Act 2004 to 25 companies that formed part of the Nortel telecommunications group in Canada, the US, Europe and Africa.
Raquel Agnello QC, Jonathan Hilliard and Tom Robinson acted on behalf of the Pensions Regulator in this case, and appeared before the Determinations Panel. They formed part of a team including overseas lawyers and the case raised issues of coordination with foreign insolvency processes as well as insolvency and pensions law in this country.
The decision was taken by the Determinations Panel to require companies in the Nortel group to provide financial support, of a value up to £2.1 billion, to the occupational pension scheme of Nortel's UK operating company. That company, and most of the other members of the Nortel group, entered insolvency processes in various jurisdictions in January 2009, leaving the pension scheme with a deficit of £2.1 billion.
Raquel has been retained on a number of cases for the Pensions Regulator since she acted for them in 2007 in the case of Sea Containers, the first Financial Support Direction issued by the Determinations Panel. The Nortel decision follows swiftly after the issue of the first Contribution Notice under the Pensions Act 2004 in the case of Bonas, where both Raquel and Tom were also instructed by the Regulator.
Raquel is currently leading Tom on two further cases for the Regulator which remain confidential at present. Philip Hinks has also worked for the Regulator in what is turning out to be a very fast growing area of law.
A copy of the determination in the Nortel case is available at:
http://www.thepensionsregulator.gov.uk/docs/DN1709618.pdfn
For more information concerning this case or to discuss the practices of Raquel, Tom or Phil, please contact the clerks on 020 7831 6381 or clerks@11sb.com.