£20m pensions deficit sealed Ariel Industries fate

admin — Wed, 02 May 2012 09:42:53 +0000

A deficiency of more than £20m in its pension scheme pushed Leicester-based Ariel Industries and subsidiary Ariel Fasteners over the edge, a new report has revealed.

But a deal secured by the trustee of the scheme and the administrator looks set to have saved the pensions of all 370 members following a long-running saga.

Springfields move to new offices

admin — Tue, 10 Apr 2012 18:46:35 +0000

Springfields are pleased to announce the move to new offices on De Montfort Street, Leicester on 10 April 2012.

The Company has seen substantial progressive growth over the years and the move fits our future developments and expansion plans.

The new office details are:

Springfields Business Recovery & Insolvency Limited
38 De Montfort Street
Leicester
LE1 7GS

T 0116 299 4745
F 0116 299 4742
http://www.springfields-uk.com

The new address should be used in all future correspondence. Our phone numbers were unaffected by the move so the usual numbers still apply.

We are happy to say that the overall transition of the business to our new premises has been accomplished successfully and our staff are very pleased to be working in their new environment.

The new premises provides Springfields with more flexibility in the way that we operate and also offers better facilities for our clients and visitors, to which we would like to extend a warm welcome in the future.

For more information, please contact us at info@springfields-uk.com

IMPORTANT HIGH COURT RULING – Pensions and Bankruptcy

admin — Wed, 04 Apr 2012 12:02:36 +0000

Earlier today B Livesey QC sitting as a Deputy Judge of the High Court handed down judgment in the case of Raithatha v Williamson. The case relates to an application made by Mr Situl Raithatha as Trustee in Bankruptcy of Mr Michael Roy Williamson for an Income Payments Order (“IPO”) in respect of Mr Williamson’s pension which he had not yet elected to draw despite having reached the appropriate age and being able to do so under the terms of the pension scheme. The hearing was to determine the preliminary issue as to whether sums the debtor was entitled to draw under his pension scheme being a lump sum and an annuity were income for the purposes of Section 310(7) of the Insolvency Act 1986. It was held that these were income and could form part of an IPO even though the pension had not yet been activated.

Following the changes brought about by the Welfare Reform & Pensions Act 1999 pensions have not vested in a Trustee in Bankruptcy and there are now limited circumstances where a pension can be attacked.

Mr Raithatha of Springfields Business Recovery & Insolvency commented “This is an extremely important case and means that a Trustee in Bankruptcy has greater power when looking at pension entitlements and will in turn lead to better return to creditors generally.

The pension fund in this case is estimated to be worth approximately £1M. This may lead to a claim to an immediate tax free lump sum of approximately £250,000 and a substantial annuity which can also be claimed under an IPO for a period of 3 years.

We have other similar cases going through the Courts where applications have been or are in the process of being made. The sums involved overall will be significant and we are liasing with major stakeholders.

The Trustee was advised by Mr Ashwin Mody, Insolvency Partner at Spearing Waite LLP.

The Court also continued an injunction that the Trustee had obtained at the start of the process preventing the Bankrupt from dealing the pension.

Leave to appeal has been given.

A copy of the judgement can be accessed by clicking here.

For further information please contact:

Situl Raithatha
Director
Springfields Business Recovery & Insolvency Limited
T 0116 299 4745
E situl.r@springfields-uk.com

http://www.springfields-uk.com

Pensions Under Attack In Bankruptcy

admin — Mon, 02 Apr 2012 16:24:07 +0000

As has been recently reported in the press the High Court is poised to decide whether un-discharged Bankrupts of a pensionable age could be required to make payments to creditors in respect of their lump sum and annuity entitlement.

The application has been made under Section S310(7) of the Insolvency Act 1986 and seeks the power of the Court to make an Income Payments Order (“IPO”) not withstanding the fact that the pension has not yet been activated by the Bankrupt on the basis that he is entitled to the funds.

The case has been bought by Situl Raithatha as Trustee in Bankruptcy of Michael Roy Williamson. Mr Raithatha of Springfields Business Recovery & Insolvency commented “This is an extremely important case and if found in our favour will mean that Trustees in Bankruptcy have greater power when looking at pension entitlements and in turn lead to better return to creditors generally.

The pension fund in this case is estimated to be worth approximately £1M.

We have other similar cases going through the Courts where applications have been or are in process of being made. The sums involved overall will be significant and we are liasing with major stakeholders. ”

For further information please contact Situl Raithatha of Springfields Business & Insolvency on 0116 299 4745.

Situl Raithatha
Director

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Payday loan customers regret taking advance, says R3

admin — Wed, 07 Dec 2011 16:45:22 +0000

Sixty per cent of pay day loan customers regret taking out the loan, according to research released nationally today by trade association R3.

The insolvency trade group commissioned ComRes to poll 2,005 individuals online between 21 and 23 October 2011 and the results showed that 48% of pay day loan customers believed their decision to use a pay day lender made their situation worse.

Conversely, 13 per cent of those polled said the loan had actually had a positive effect on their finances.

Frances Coulson, president of R3, said payday loans should not be used to resolve long-term debt.

She explained: “We know that many who take them out find them to be a negative experience, often escalating financial troubles.

“A new group of ‘zombie’ debtors – who currently pay only the interest charges on their debt and not the debt itself – has also been identified by R3’s research.

Interest only

“One in six individuals are only able to pay the interest on their debt rather than paying off the debt itself.

“This breaks down into 11% who are only servicing debt on their credit cards, and 9% who are only paying the interest charges on their overdraft.”

The highest ever levels of concern over debt were recorded in this quarter’s personal debt snapshot run by R3, with nearly two thirds (60%) of individuals worried about their debt levels.

This is up 13 percentage points on July’s figure and 21 percentage points up on this time last year.

North East tops league

In London this figure rises to 67%, but peaks at 70% in the North East where concern is at its highest.

As debt concern rises, R3’s research reveals that saving is at a low. The number of individuals with no savings at all has risen sharply from 19% last quarter to 27% this quarter.

Overall, 40% of the population is saving less at the moment than usual, compared to 27% of the population a year ago.

Source: www.insolvencynews.com