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Eleanor Stephens spoke to Raquel Agnello QC of Erskine Chambers who believes the Pensions Regulator can breathe a sigh of relief after the Supreme Court’s decision in Nortel.
Re Nortel GMBH (in administration) and other companies Re Lehman Brothers International (Europe) (in administration) and other companies [2013] UKSC 52, [2013] All ER (D) 283 (Jul)
The Supreme Court considered whether the liability that would arise on a financial support direction (FSD) being served by the Pensions Regulator pursuant to the Pensions Act 2004 (PA 2004) on a company in administration ranked as an expense of the administration or a provable debt. The Supreme Court decided the company’s liability under the FSD regime, arising pursuant to a FSD issued after the company had gone into administration, ranked as a provable debt of the company and not an expense of the administration.
The Supreme Court has ruled that sums claimed under an FSD
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