PwC's 2023 Pensions and Restructuring Lawyers Event

At our event we had three sessions with guests from the PPF, Davidson Kempner and Erskine Chambers:

• Victoria Tillbrook was joined by Lord Gavin Barwell and Rt. Hon Alan Milburn to discuss the impact of the events of the last few years on the UK economy and what the future looks like, in particular in the run up to the next UK General Election.
• Ed Macnamara and Catherine Atkinson discussed insolvency and restructuring trends in various sectors such as automotive, construction, retail & hospitality and agriculture.
• Atul del Tasso-Dhupelia hosted a panel to debate how evolution in the pensions and restructuring markets is impacting the options available for companies. He was joined by Raquel Agnello KC (Erskine Chambers, Insolvency KC), Richard Clarke (Davidson Kempner European Partners LLP), Malcolm Weir (Pension Protection Fund, Director of Restructuring & Insolvency) and Katie Lightstone.

Survey results

We surveyed the 300+ lawyer audience on key issues in the sector. Our survey ranged from views on macroeconomic risks, anticipated levels of distress, Liability-Driven Investment, TPR powers and more.

• More than 9 out of 10 lawyers anticipate an increase in UK insolvencies over the next 12 months.
  
• A third of lawyers say you can ‘cross-class cram down’ a s.75 debt in a Part 26A Restructuring Plan. A third say you can’t. A third say they’re unsure.
  
• Distress, refinancing and interest rates are seen as the biggest risks facing clients.
  
• Inflation, interest rates, and lasting impacts of Brexit are the top 3 risks facing the UK economy.
  
• 65% of lawyers believe their clients have the same or higher level of DB scheme risk compared with 2021.
  
• 2 years on from implementation of the Pension Schemes Act 2021 and 38% of lawyers believe the Act is damaging the UK rescue and investment cultures.
  
• Only 11% of lawyers recommend using TPR Clearance to mitigate regulatory risks, placing more onus on legal and covenant advice.
  
• 60% of lawyers believe an element of DB needs to be the future of pensions to address pensions poverty.