For instance, recently the assets of food company Bernard Matthews were sold in a pre-pack insolvency arrangement. This enabled banks, shareholders and directors to recover their monies but left the pension scheme with a deficit of over £20m, now standing at about £75m. This has not been followed by an inquiry from the Commons work and pensions committee. At the very least, it needs to explain why the dumping of pension scheme liabilities by other insolvencies is not investigated.
The sharehgolders, as shareholders, lost everything of course. The clue is in the word “insolvency”.
Prem Sikka is an accounting professor.