Restructuring and special situations for Covenant and Sustainability services
Whether you are a trustee, a company director or a financial stakeholder, restructuring situations can be difficult landscapes to navigate. Restructuring a business with a defined benefit (DB) pension scheme is possibly even more complex. You will generally need to assess the options for managing and/or compromising pension scheme liabilities through a range of restructuring solutions. You will need to understand the impact on the employer’s covenant and how it might be mitigated. You will also need to get a handle on the ‘moral hazard’ risks associated with restructuring plans, particularly if the outcome is likely to be highly adverse to the scheme.
With their up-to-date knowledge of the changing regulatory landscape, our specialists are ready to help you to deliver creative solutions which optimise outcomes for all stakeholders.
Our restructuring advisory services in a nutshell
Our ‘core’ project work involves providing restructuring advisory services for companies with DB scheme(s) and their financial stakeholders (including the pension scheme and its trustees) which are facing an imminent restructuring. This means:
- testing and challenging financial information to support corporate viability/solvency assessments and scheme affordability negotiations;
- leading or providing expert advice to stakeholders in a restructuring process and providing assistance in restructuring negotiations;
- assessing the impact of a reorganisation or restructuring on the pension scheme and its employer covenant, including any mitigation that may be required to repair detriment;
- undertaking or reviewing insolvency contingency planning;
- developing and understanding estimated outcome statements (EOS) and entity priority models to establish estimated returns to creditors in the event of insolvency;
Our restructuring advisory services in a nutshell
Our ‘core’ project work involves providing restructuring advisory services for companies with DB scheme(s) and their financial stakeholders (including the pension scheme and its trustees) which are facing an imminent restructuring. This means:
- testing and challenging financial information to support corporate viability/solvency assessments and scheme affordability negotiations;
- leading or providing expert advice to stakeholders in a restructuring process and providing assistance in restructuring negotiations;
- assessing the impact of a reorganisation or restructuring on the pension scheme and its employer covenant, including any mitigation that may be required to repair detriment;
- undertaking or reviewing insolvency contingency planning;
- developing and understanding estimated outcome statements (EOS) and entity priority models to establish estimated returns to creditors in the event of insolvency;
- performing ‘moral hazard’ risk reviews, to consider the likelihood and potential impact of intervention by the Pensions Regulator;
- supporting stakeholders in assessing options to compromise scheme benefits and separate the pension scheme from the sponsor;
- providing expert support around stressed and distressed sales processes;
- advising stakeholders after any insolvency event or after the implementation of a restructuring plan;
- acting as an expert witness in regulatory and court proceedings;
- taking formal insolvency appointments in specific situations, including conflict work relating to a DB scheme.
This is how we stand out from our competitors
This is how we stand out from our competitors:
- Our senior team is highly experienced in covenant advisory, restructuring and insolvency engagements including a range of stressed and distressed situations from SMEs to high-profile and complex groups such as Carillion and De La Rue.
- We are on the Pension Protection Fund’s Trustee and Support Services Panel, helping trustees involved in contingency planning and reorganisations and restructurings to review proposals; assessing the impact for the scheme and covenant; and helping with negotiations.
- Pensions are all we do. We will not try to expand our role or duplicate the work of other advisors. Our focus is on delivering safer financial futures for pension scheme members.
- We are a multi-disciplinary team including, lawyers, accountants, actuaries, corporate financiers and insolvency practitioners.
- As an independent specialist, we are conflict-free and we seek to work alongside other experts to deliver positive client outcomes.
- We have a specialist DB scheme-focused restructuring team embedded in an established pension covenant advisory firm.
This is how we stand out from our competitors
This is how we stand out from our competitors:
- Our senior team is highly experienced in covenant advisory, restructuring and insolvency engagements including a range of stressed and distressed situations from SMEs to high-profile and complex groups such as Carillion and De La Rue.
- We are on the Pension Protection Fund’s Trustee and Support Services Panel, helping trustees involved in contingency planning and reorganisations and restructurings to review proposals; assessing the impact for the scheme and covenant; and helping with negotiations.
- Pensions are all we do. We will not try to expand our role or duplicate the work of other advisors. Our focus is on delivering safer financial futures for pension scheme members.
- We are a multi-disciplinary team including, lawyers, accountants, actuaries, corporate financiers and insolvency practitioners.
- As an independent specialist, we are conflict-free and we seek to work alongside other experts to deliver positive client outcomes.
- We have a specialist DB scheme-focused restructuring team embedded in an established pension covenant advisory firm.
