Pension priority in bankruptcies
Your support helps us to tell the story
This election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.
The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.
Help us keep bring these critical stories to light. Your support makes all the difference.
The Court of Appeal has ruled bankrupt companies must fill their pension gaps before paying other unsecured debts, upholding an earlier ruling against the administrators for Lehman Brothers and Nortel Networks.
The court upheld a High Court ruling last year that pension funds were an expense and must be paid before debts to administrators. The ruling prompted warnings it could hit the chances of business rescues, though experts said the judgment would only apply in specific circumstances, where the Pension Regulator is involved.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments