We will take part in restructuring if it means the return from the employer will be better than if the business had been simply left to fail.

It usually involves removing the pension debt from the company, allowing it to continue to trade with a positive cash flow and potentially make a profit. 

When we’ll take part in restructuring

We can only take part in restructuring or rescue if the proposal meets specific criteria.

These principles are designed to make sure that the pension scheme is in a much better position than it would have been if we had done nothing. 

For full details of our criteria, please read Section 2 of our General Guidance For Insolvency Professionals.

Our guidance booklet, ‘Our Approach to Restructuring’, provides more background information along with helpful examples of how we apply this criteria. 

Standard documents for restructuring 

Among other requirements, as part of any restructuring, we’ll require cash and an equity stake to protect our own interests and the interests of the scheme.
We’ve prepared a suite of standard documentation to facilitate this. 

Any company or group of companies proposing a restructuring should be prepared to enter into these documents. If they’re not prepared to do so it may prevent a restructuring, so it’s important to highlight this as soon as possible

Download our standard restructuring documents 

Shareholders' agreement

Sets out the relationship between the shareholders and how they’ll deal with each other.  Among other things it will govern any material changes to the business, e.g. borrowing, increases in salary/benefits and bonuses for the directors/senior management etc.

Download the shareholders' agreement

Articles of association

The new Articles we require the company to adopt to provide us with the protection we require

Download the articles of association

Loan note agreement

If it’s not possible for the proposer to pay all the cash required on completion, we can consider deferring with loan notes, usually with supporting security.

Download the loan note agreement

Security documents in support of loan notes 

Any deferred consideration should rank ahead of general creditors for repayment, which is achieved through taking this security; often in the form of a mortgage debenture.

Download security documents in support of loan notes 

Inter-creditor agreement guidance 

Guidelines on what this should include. It will govern how the various creditors of the company will deal with each other, including giving notice of any enforcement action they’ll take.

Download inter-creditor agreement guidance