UK Pension trustees, usually a low-profile part of corporate life, have been unwillingly thrust into the limelight in the past week. Two large transactions have been unveiled that place them – and by extension, the Pensions Regulator – at the heart of deals that are aimed at helping struggling companies survive the recession and expand.
The two involve high-profile UK companies; British Airways, which announced a merger with Iberia, and Cable and Wireless, which confirmed long-awaited plans to split itself into two companies. In each instance, questions remain over which assets – cash flows and profits – are available to repair the huge deficits that schemes of both employers now carry.
