02 February 2010
The Pensions Regulator has ruled against a proposal from
Reader's Digest Association, which is the American parent company
of Reader's Digest UK, to inject £10.9m and one third of the
equity of the UK business into the UK pension fund.
The proposal reportedly had the backing of the fund trustees and
the Pension Protection Fund.
The Reader's Digest scheme currently has a deficit of
£125m.
Reader's Digest Association sought American Chapter 11
bankruptcy protection in August 2009 and had hoped to emerge from
it yesterday, but instead announced a temporary delay.
