Case Study: Mitigation secured by a corporate sole trustee on change of control of the sponsoring employer
As a corporate sole trustee we are generally able to react more quickly than a traditional trustee board and we were certainly helped by having a strong and responsive team of advisers on this transaction. The outcome has been positive for members as the security of members’ benefits has been protected through the process.
Daniel Barlow – Lead director, representing LawDeb as Corporate Sole Trustee
The interaction between funding and covenant is rarely straightforward in these circumstances, but we worked closely with the corporate sole trustee and their advisers to understand the issues and their objectives. This collaborative approach allowed us to put a range of clear, joined-up solutions to the employer and helped achieve an outcome that was acceptable to all parties.
Steve Hitchiner – Scheme Actuary, Barnett Waddingham
Having a sole professional trustee meant that negotiations around mitigation could take place in real time and agreement was reached quickly. The Scheme is now well funded which allows the Employer to concentrate of its business whilst leaving Law Deb as sole trustee to take care of the Scheme and its members.
Duncan Buchanan – Legal Adviser, Hogan Lovells
As is often the case, strong communication was important in quickly arriving at a fair outcome. Early discussions between the sole trustee and the seller highlighted the key factors in the transaction from a regulatory perspective. As a result of frequent touch points thereafter, there were no surprises for the trustee on the shape of the deal and there was nothing unexpected for the relevant stakeholders in the trustee’s requests for mitigation.
Jonathan Wolff – Covenant Adviser, Lane Clark & Peacock LLP