LAWSUITS NEWS & LEGAL INFORMATION
Pension Scheme
London, UK: (Feb-6-08) The Trustees of the two main Sea Containers Pension Schemes brought charges against Sea Containers, over the company's reorganization process. Sources stated that since the Chapter 11 negotiations first began in October 2006, the board of directors and the officers of Sea Containers have been focused on achieving a plan of reorganization that provides full and fair settlement for all creditors. The major creditors involved are the 1983 and the 1990 pension funds which have almost 1500 members between them and the holders, thought to be a number of US hedge funds of the four outstanding bond issues.
In a recent development in the case, Sea Containers announced that it has reached agreement in principle with the Trustees of the two main Sea Containers Pension Schemes to agree the amount of their claims against the Sea Containers estate. The agreement with the Trustees for the pension funds, which are estimated to be in deficit by approximately $200 million under the s75 'buy out' basis prescribed by UK law, will allow the company and the trustees to avoid costly and protracted litigation in multiple and potentially competing jurisdictions. The agreement also creates an additional reserve of $69 million for certain potential pension scheme liabilities in respect of age-related equalization changes.
Following the settlement, the company has withdrawn its appeal against the Financial Support Direction (FSD). The FSD, which sought to oblige Sea Containers Limited to put in place additional financial support for the pension funds, was handed down by the Determinations Panel of the UK Pensions Regulator on 3 July 2007. [TRADING MARKETS: PENSION SCHEME]
Published on Feb-8-08
In a recent development in the case, Sea Containers announced that it has reached agreement in principle with the Trustees of the two main Sea Containers Pension Schemes to agree the amount of their claims against the Sea Containers estate. The agreement with the Trustees for the pension funds, which are estimated to be in deficit by approximately $200 million under the s75 'buy out' basis prescribed by UK law, will allow the company and the trustees to avoid costly and protracted litigation in multiple and potentially competing jurisdictions. The agreement also creates an additional reserve of $69 million for certain potential pension scheme liabilities in respect of age-related equalization changes.
Following the settlement, the company has withdrawn its appeal against the Financial Support Direction (FSD). The FSD, which sought to oblige Sea Containers Limited to put in place additional financial support for the pension funds, was handed down by the Determinations Panel of the UK Pensions Regulator on 3 July 2007. [
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SETTLEMENTS
- TYCO International To Pay PRIM $11 Million
