Clifford Chance

'Deficit for equity swap': Uniq uses a scheme of arrangement to shed its pension liabilities

28 April 2011

In a significant transaction for the pensions' industry, the high court has recently blessed a deal that sees shareholders relinquishing 90% of their shares in exchange for wiping out the company's £473m pension scheme liability. This is the first restructuring where a scheme of arrangement (one of the techniques contained within the Companies Act 2006) has been used to shed this kind of liability. The case may serve as a blueprint for other companies in need of restructuring and weighed down by the enormous liabilities that are derived from participating in defined benefit pension schemes.

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