Total insolvency recoveries are now anticipated at around £1.2bn, with approximately £200m expected over the course of 2018 and 2019.
This well-earned result has been achieved following a sustained effort by the Trustees and the PPF, working together over several years. The PPF will no longer be required to use its resources to help pay members benefits.
Jonathon Land, head of PwC’s pensions credit advisory practice and adviser to Nortel’s UK pension trustees, said: “We have worked with the Trustees over the last 10 years to help them achieve this result. The turning point in the scheme’s fortunes was the decision by Judges in the US and Canada to allocate the $7bn disputed residual assets on a modified version of the pro rata* basis, as had been argued by the Trustees in Court.
“The Trustees should be very proud of their achievements and this excellent result. They could easily have stepped back when the group entered insolvency, but instead were determined to have an equivalent seat at the table to other stakeholders and secure a better outcome for the schemes’ members.
“It is particularly pleasing that the many years of hard work will enable extra money to be placed into the pockets of pensioners, who helped to generate Nortel’s assets.”
To help others in similar situations, the Trustees of the Nortel UK Pension Plan have published their own perspectives on their recovery efforts, as well as a more detailed legal account of the developments in the Nortel case. Please see link to these documents
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