Posted: 02 Mar, 2020
FREE WEBINAR: Game-changer for corporate refinancing, reorganisation and restructuring where Debtor has a DB scheme: New Pension Schemes Bill imposes far reaching sanctions and liabilities for directors, investors, lenders and advisors.
The Government is planning to introduce new criminal offences (with up to 7 years imprisonment), new civil fines (of up to £1million) and personal civil liability against directors, investors, lenders and advisors who take action, or fail to act in a way, which is deemed by The Pensions Regulator to be materially detrimental to a defined benefit (DB) pension scheme.
These new sanctions and regulatory powers are extremely widely drafted and they will fundamentally change the approach to restructuring a distressed business with a DB scheme by requiring directors to have regard to, and protect, the interests of their scheme ahead of other unsecured creditors or face potential criminal sanctions or personal liability as a result.
These new sanctions and powers, which are likely to be introduced later this year, will also impact:
- distributions to shareholders;
- M&A activity; and
- refinancing and the ability to raise fresh capital in relation to businesses with DB schemes.
Experts John Whiteoak and Rachel Pinto from Herbert Smith Freehills pensions and restructuring teams and Alex Hutton-Mills and Dan Mindel from specialist pensions advisors Lincoln Pensions participated in a webinar on 26 February 2020 which considers:
- the extent of these new sanctions and regulatory powers, contained in the Pension Schemes Bill that is currently going through Parliament, and
- the impact on directors' duties and the considerations of investors, lenders and advisors in the context of restructuring and insolvency situations, refinancing and other corporate activity.
The webinar is free to access - please click on the link below. *you will be asked to register to open it but the information will not be used for any marketing and purely to access the webinar.
Back to News