Fastrack administration?

[jigman1]

If a company goes into a �75 million "fastrack administration" and is bought out immediately by a global venture capital company, then who gets the �75 million?

[Harley]

It's known as a Pre-Pack where the busines was sold for the "best" price before going into Administration. After the Insolvency parasites have taken their big fat fees the preferential creditors will be paid and whatever is left is divided up amongst the others. Of course the �28 million pension deficit will not be fully reinstated.

[jigman1]

Thanks Harley.You obviously know what company I'm refering to. We, the employees, appear to have been totally shafted in this matter. Our pensions our with the Pension protection Fund.Jobs are going. Some of us bought shares in the company where we normally wouldn't dabble in such things . The words "pre arranged Fastrack administration" sound to us like someone made some dosh here , Wheres are share?

[Harley]

Unfortunately the Shareholders are the very last in the queue and would only receive a payment in the unlikely event that all of the unsecured creditors are paid in full.

I don't know what type of pension scheme was operated but if it was a final salary scheme there will not be enough in the money pool to meet all of the members retirement expectations.The Government is bringing in Legislation to put an end to this and that's why some of the larger employers have recently switched to "Personal Pension Plans " that reflect individual contributions. On a personal note I worked for a company 25 years ago that operated a final salary scheme. They dropped it in favour of personal pensions as it cost 11% of the payroll. Most employees took up the new scheme but the employer only paid 4% into it.

There is a link here about the proposed legislation

www.pkf.co.uk/web/PKF800.nsf/*********/IDF844B1FA9949A1AD80256D470050A84C?OpenDocument

[Harley]

http://www.pkf.co.uk/web/PKF800.nsf/*********/IDF844B1FA9949A1AD80256D470050A84C?OpenDocument

I can never get these links to work if it doesn't type this in Google..THE OCCUPATIONAL PENSION SCHEMES (WINDING UP AND DEFICIENCY ON WINDING UP

[jigman1]

thanks Harley.