CASE MOTE Re Nortel GmbH

摘要

In November 2010 the High Court heard applications for directions by the administrators of 20 companies in the Nortel and Lehman Brothers groups in relation to the Financial Support Direction (FSD) regime under the UK Pensions Act 2004.. The question before the court was the priority of an FSD issued by the Pensions Regulator to an insolvent company after the onset of administration. The result that the court felt constrained to reach may have damaging consequences for the rescue culture at the heart of insolvency law and wide repercussions for lending to group companies where the group contains one or more under-resourced corporate employers.