Friday, August 19, 2022

BHS pensions likely to reach court as conflict on both sides escalates

Sir Phillip Green‘s advisors have clashed with pension regulators, putting hopes of solving the BHS pension crisis before Christmas in doubt.

A courtroom battle to determine where the remaining funds will come from to plug the BHS pension deficit is looking increasingly likely, according to the Mail on Sunday.

Green has reportedly stated he is owed £35 million from BHS, which was placed into liquidation on Friday. 

Both sides are also reportedly preparing their cases.

Over the weekend the Pensions Regulator stated it had made its requirements clear for months but was yet to receive a “credible proposal” from Green.

They are looking for £350 million from him and have insisted any contribution from him must be voluntary.

READ MORE: BHS enters liquidation

Green has made proposals of £250 million, which reportedly takes into account the £35 million he is owed from the retailer.

FRP Advisory, one BHS‘s liquidators, has disputed this. The firm was appointed as a second administrator following concerns that Green was too close to Duff and Phelps, the other administrator of BHS, having worked with them in the past.

Duff and Phelps are now embroiled in a separate row with BHS over fees, raising their bill from £3.5 million to £4.1 million.

“The work Duff & Phelps have undertaken is a significant cost to creditors,” Pension Protection Fund’s Malcolm Weir said.

“However, we look to ensure value for money on behalf of pension scheme members, our levy payers and creditors generally.”

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