Pensions Regulator beats Lehmans in latest court battle

The Court of Appeal has ruled that pension scheme liabilities are prioritised over other unsecured claims when companies collapse.

The case concerns Lehman Brothers and Nortel. The collapsed firms have pension scheme liabilities of £148m and £2.1bn respectively.

Lehman and Nortel have been fighting the Pensions Regulator (TPR) over scheme trustees' ability to supercede other claims on assets emerging from the insolvency of a company. 

This morning's judgement in London upheld a high court decision made in December 2010 in favour of TPR. The case is expected to go on to the Supreme Court.

PwC partner Jonathon Land advised the Nortel pension plan trustees on the case.

He said: "Today's Court of Appeal ruling is highly significant and impacts the Nortel pension plan, and pension schemes more widely.

"The Nortel case judgment will improve the position of the pensioners who are currently negotiating with US bond holders over the split of $7.5bn of cash realised from the sale of global assets."