Clifford Chance

Clifford Chance advises Dairy Crest Pension Trustee in relation to floating charge over maturing cheddar stocks

International law firm Clifford Chance advised the Trustee of the Dairy Crest Pension Fund in relation to the granting of security over maturing cheddar inventories to the Trustee. The security, in the form of a floating charge, is over the maturing cheddar stocks of Dairy Crest Group Plc, the leading UK-owned dairy foods company and manufacturer of Cathedral City Cheddar. The security, which has a maximum realisable value of £60 million, was granted to the Trustee in conjunction with a one-off payment by Dairy Crest Group Plc into the Pension Fund of £40 million which represents a portion of the proceeds from the sale the French spreads business, St Hubert.

The arrangement is believed to be the first example of the position of a pension fund being improved through a security interest in cheese.

The Clifford Chance team advising the Dairy Crest Pension Trustee consisted of finance partner Karen Hodson assisted by associate Katie Hicks, pensions partner Clare Hoxey assisted by associate Sarah McAleer and restructuring and insolvency senior associate David Towers.