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Restructuring and special situations for Corporate Finance services

If you’ve ever been involved in restructuring a business with a defined benefit (DB) pension scheme, you’ll know just how complex it is. Apart from requiring specialist expertise, the process also needs up-to-date knowledge of the changing regulatory landscape – especially these days, with the increasing likelihood of regulatory intervention (highlighted by the Pensions Schemes Act 2021, which introduces the risk of personal criminal offences).

You’ll generally need to assess the options for managing and/or compromising pension scheme liabilities through a range of restructuring solutions which require proactive engagement with key stakeholders (including regulators). You’ll also need to understand the impact on the covenant and how any adverse impact might be mitigated. Finally, you’ll also need to get a handle on the ‘moral hazard’ risks associated with restructuring plans, particularly if the outcome is indeed likely to be highly adverse to the scheme.

With their up-to-date knowledge of the changing regulatory landscape, our specialists are ready to help you to deliver creative solutions which optimise outcomes for all stakeholders.

Restructuring advisory services for corporates

Our restructuring advisory services for companies with DB scheme(s) and their financial stakeholders (including the pension scheme and its trustees) which are facing an imminent restructuring include:

  • testing and challenging financial information to support corporate viability/solvency assessments and scheme affordability negotiations;
  • undertaking or reviewing insolvency contingency planning;
  • developing and understanding estimated outcome statements (EOS) and entity priority models to establish estimated returns to creditors in the event of insolvency;
  • leading or providing expert advice to companies and their financial stakeholders in a restructuring process;
  • providing negotiating support;
  • assessing the impact of a reorganisation or restructuring on the pension scheme and its employer covenant, including any mitigation that may be required to repair detriment;
  • performing ‘moral hazard’ risk reviews, to consider the likelihood and potential impact of intervention by The Pensions Regulator;
  • providing expert support around stressed and distressed sales processes;
  • advising financial stakeholders after any insolvency event or after the implementation of a restructuring plan;
  • implementing regulated apportionment arrangements (RAAs) and company voluntary arrangements (CVAs).
  • acting as an expert witness in regulatory and court proceedings;
  • taking formal insolvency appointments in specific situations, including conflict work relating to a DB scheme.

Independent advice from a multidisciplinary team

  • We offer a pensions-focused, independent, restructuring service.
  • As an independent specialist, we are conflict-free and we seek to work alongside other experts to deliver positive client outcomes.
  • Our multi-disciplinary team of lawyers, accountants, actuaries, corporate financiers and insolvency practitioners guarantees a holistic view of any situation.
  • Pensions are all we do. We will not try to expand our role or duplicate the work of other advisors.
  • Our senior team is highly experienced in covenant advisory, restructuring and insolvency engagements, including a range of stressed and distressed situations, from SMEs to high-profile, complex groups such as Carillion and De La Rue.
  • We have a specialist DB scheme-focused restructuring team embedded in an established pension covenant advisory firm.