Originally published October 17, 2011

Keywords: Financial Support Directions, defined benefit pension schemes, Nortel, Lehman, administration expenses

The Court of Appeal has confirmed that the costs of complying with Financial Support Directions ("FSDs") proposed to be issued to certain Nortel and Lehman companies by the Pensions Regulator ("TPR") qualify as "super priority" administration expenses, payable in priority to unsecured creditors, floating charge holders and the administrators' own fees.

The question

The Court of Appeal considered whether the High Court was correct to hold that the...

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