LONDON A Financial Times investigation has found that several UK companies have used a controversial insolvency procedure to offload up to £3.8 billion of pension liabilities.
The investigation found that 17% of the 868 schemes managed by the Pension Protection Fund (PPF) a fund which picks up pension liabilities from failing companies had entered the scheme as a result of so-called pre-pack administration.
A pre-pack is a complex insolvency procedure which allows companies to be sold even as they are being declared insolvent.
However, the Financial Times found that two in three of those pre-pack schemes entering the PPF had involved sales to existing owners or company directors.
That, in turn, indicates th…
Read the full article at: https://www.businessinsider.com.au/ft-report-uk-firms-using-controversial-loophole-to-offload-pension-liabilities-2017-4
