07 November 2006
Sea Containers has been warned that it must pay £143m to
its two UK pension schemes if it wants to wind them up.
The UK pension regulator says it may issue the insolvent
shipping company with a formal instruction to do this.
Sea Containers entered into the US Chapter 11 bankruptcy
procedure last month, as it cannot repay bondholders.
The company says it wants to treat the pension schemes in line
with its other creditors and is still in discussion with the UK
regulator.
However, the regulator is worried that Sea Containers may try to
avoid its legal responsibility to fund the schemes fully.
One scheme - known as the 1983 scheme - was closed to its
existing members at the end of September.
That may lead to its being wound up.
The company would also like to close the second scheme - the
1990 scheme - as well to stop its deficit getting any bigger.
Together, they have about 1,300 members.
"I cannot say what will or will not be offered, but they will be
treated as part of the insolvency process," said a Sea Containers
spokeswoman.
