The parent company of this scheme’s sponsoring employer had filed for Chapter 11 bankruptcy in the United States when we were appointed as trustee in 2013.
Since our appointment we have worked closely with our co-trustees and employer contacts in both the US and the UK to make real progress and protect the scheme’s members.
The international element
It was apparent very soon after our appointment that the long term sustainability of the scheme was dependent on developing a positive working relationship with the employer’s US parent company.
A key part of our initial approach was to ensure that we adapted our means of communication so that stakeholders in the US remained fully engaged in the scheme’s business.
Resolving problems commercially
A review of the scheme’s rules was carried out in 2014 which identified some uncertainty over the date that the scheme had been closed to future accrual.
As part of the Chapter 11 negotiations we helped to resolve this area of uncertainty and secured an additional contribution into the scheme to cover the additional funding liabilities. A suitable funding solution was then agreed for the scheme and the parent company was able to emerge from Chapter 11 proceedings.