High levels of scheme deficits and difficult trading conditions can lead to situations where more innovative and drastic thinking is required.
2020 Trustees specialises in finding solutions that help our members and sponsors in such circumstances and we have successfully done this in over 20 cases.
We have extensive knowledge and experience of benefit and debt compromises, including the use of Regulated Apportionment Arrangements, and have helped many sponsors avoid insolvency whilst also optimising the benefits that our members receive.
Our experience in this field gives us a deep understanding of the drivers of all associated stakeholders, including financiers, the PPF and the Regulator. We use this to help minimise the risk of any stakeholders inadvertently falling into ‘material detriment’ or ‘moral hazard’ breaches of the law.
In times of distress, parties can become emotive and this can frustrate the finding of optimal solutions. Our calming, inclusive and commercially pragmatic approach helps bring such parties around the table so that meaningful discussion can ensue. We then manage those relationships to take the project through to its end.
Situations where we have been able to assist include:
Financial Difficulty or Distress
- Sponsor struggling to meet contribution requirements
- Sponsor close to failure/insolvency
- Despondent/demotivated management
- Emergence of unfunded liabilities e.g. equalisation issues
- Communication breakdowns
Trustees “out of their depth” e.g. especially complex funding negotiations
- Difficult or acrimonious funding negotiations
- Complex investment strategy proposals
- Creative non-cash security arrangements
- Regulated businesses such as insurance, banking and utilities
For further information please contact us.