CIGA has enacted arguably the most significant changes to the UK’s corporate rescue toolkit since 1986.
Whilst the aim of these changes is to support companies survive the current crisis, the new tools potentially pose significant risks to DB pension schemes.
CIGA is a new Act enacted on 26 June 2020 implementing arguably the most significant changes to the UK’s restructuring and insolvency toolkit since 1986. The changes give companies temporary easements to help them navigate COVID-19, but also introduce permanent new tools that make the UK’s rescue regime more “debtor-friendly” than it has ever been.
Covenant understanding is a key element to a trustee board’s strategic thinking. However, in the current climate, with the potential risks to pension schemes that the new CIGA tools may pose, trustees need more than just business-as-usual covenant advice.
Trustees need covenant advisors that have the experience of leading complex and pressurised restructuring situations.
We have the scale and experience to give trustees dedicated lead advisory service at pace:
Both our Covenant and our Restructuring & Insolvency practices are the UK’s largest. Our Covenant team has 13 Partners and Directors (7 of whom are qualified Insolvency Practitioners) and over 70 full-time staff members, whilst our wider Restructuring & Insolvency team has over 600 restructuring advisors and insolvency practitioners.
We have led some of the world’s most complex restructuring and insolvencies, innovating new techniques and processes, including the majority of the cases in the market to date involving UK DB pension schemes.
We have valuable relationships with key players in both the pensions and restructuring communities which helps us get consensual outcomes (e.g. banks, credit funds, sureties, lawyers, QCs,TPR, PPF, Government etc)
We provide our trustee clients with a joint team from both our market-leading Covenant and Restructuring & Insolvency practices, blending deep covenant expertise alongside situational restructuring experience.
We can draw upon our wider multidisciplinary pensions and sector practices, but are equally very happy working collaboratively alongside other advisors. We are happy working alongside incumbent covenant advisors, supplementing their role.