Sponsor financial distress & restructuring
Meet our sponsor financial distress specialists
How can we help?
A pension scheme sponsor that’s restructuring or in distress is a complex and difficult time for pension trustees. Entry into the Pension Protection Fund (PPF) isn’t always inevitable – we specialise in finding effective solutions that help pension schemes, members and sponsors in complex, sensitive and low affordability circumstances.
Get the timely and efficient guidance you need by using our unparalleled expertise and experience in the corporate transaction, restructuring and distressed market. Our extensive knowledge has been built up over a long time across a wide range of areas, sectors and pension scheme size.
We offer proactive management of pension scheme risk from a friendly team who have worked for leading restructuring and covenant advisers or restructuring lawyers before becoming professional trustees.
When might you need our help?
We help when pension schemes and their sponsors are facing financial difficulty, reduced affordability or distress. This includes scenarios with:
- a sponsor struggling to meet contribution requirements and/or close to failure/insolvency
- an emergence of unfunded liabilities, eg pension equalisation issues
- reduced affordability of the scheme due to required increased capital expenditure or other investment programme
- a sponsor requiring restructuring
We also help better equip pension trustees to deal with complex situations, such as: communication breakdowns or difficult funding negotiations; complex investment strategy proposals; creative non-cash security arrangements and regulated businesses like insurance, banking or utilities.
Why Vidett?
- Nimble handling and cost effectiveness – we address problems at hand whilst keeping a close eye on professional costs.
- Willingness to step in on an interim or permanent basis – we get up to speed quickly and can provide additional resource across all areas of restructuring, transactions and distress as needed.
- Ability to drive positive outcomes quickly, navigate challenges and manage potential conflicts – thanks to our strong relationships with professional advisers in the market.
- Panel members for the PPF and The Pensions Regulator (TPR) – our excellent working relationships with them enable us to minimise the risk of clients inadvertently falling into ‘material detriment’ or ‘moral hazard’ breaches of the law.
Case study
A retailer in distress
We have the experience, expertise and knowledge to optimise outcomes for scheme members from challenging situations.
The background
We were appointed to the trustee board of an employer experiencing significant trading losses, which had led to severe pressure from their creditors, with the unwelcome threat of insolvency and subsequent entry to the Pension Protection Fund.
Objectives
- Liaise with all key stakeholders;
- Maximise the return of the pension scheme;
- Ensure protection of member benefits.
The outcome
Despite potential board conflicts, and considerable time pressures, we were instrumental in negotiating a successful outcome, that saw the entire scheme remain intact.
Learn more
As a result, the employer business was saved via a restructuring, as were the jobs of all of its employees. We also helped implement an enhanced security package for the scheme, whilst ensuring payment of its deficit contributions were restored and put back on track for the future.
For further information on our sponsor financial distress & restructuring services.
