Nortel Networks UK Pensions Trust Ltd’s Further Buyout

In UK Travers Smith, advised on the matter.

Travers Smith advised Nortel Pensions with a team including Susie Daykin (Human Capital), Dan Naylor (Picture – Human Capital).

The buyout will bring the total value of transactions between the Nortel Networks UK Pension Plan (“The Plan”) and Legal & General (“L&G”) to over £2.5 billion.

In October 2018, the Trustee entered into a buyout with L&G which covered around 15,500 pensioner members and 7,225 deferred members and allowed the Plan to exit its 10-year Pension Protection Fund (PPF) assessment period with surplus to enhance benefits. This was larger than any previous PPF-plus buyout.

Until recently, recoveries in respect of the global Nortel insolvency processes continued to be received by the Plan. In March 2021, over £100 million of these funds have been used by the Trustee to secure additional member benefits in a further buy-out with L&G.

The Travers Smith team advising the Trustee was led by Partners Dan Naylor (Picture) and Susie Daykin and included Senior Associate Chris Widdison.

Involved fees earner: Susie Daykin – Travers Smith; Dan Naylor – Travers Smith; Chris Widdison – Travers Smith;

Law Firms: Travers Smith;

Clients: Nortel Pensions;