Andrew Spink QC and James Rickards successful in Contribution Notice case
Andrew Spink QC and James Rickards (instructed on behalf of the Trustee by Victoria Leigh of Squire Patton Boggs) have appeared before the Determinations Panel in relation to the Carrington Wire Defined Benefit Scheme (the “Scheme”). The case concerned the termination of a guarantee given by OAO Severstal (a large steel company based in Russia whose subsidiary Severstal-Meitz was also a target) that guaranteed Carrington Wire’s funding obligations to the Scheme (Carrington Wire being the Scheme’s principal employer). The termination of the guarantee was contrary to various assurances given by OAO Severstal and Severstal-Meitz that the guarantee would remain in place.
The case against OAO Severstal (and its immediate subsidiary Severstal-Meitz) settled shortly before the commencement of the Determination Panel’s hearing for £8.5 million. The case then proceeded against the director of the purchaser of Carrington Wire namely Mr Richard Williams. The Determinations Panel held (applying the material detriment test for the first time and resolving some important issues of statutory construction both in relation to that test and the alternative “main purpose” test) that Mr Williams was liable for a contribution notice in the amount from which he personally profited in his part in the termination of the guarantee namely £382,000.
A link to the tPR’s press release can be found here: http://goo.gl/mrzqFt
A link to the tPR’s s.89 report can be found here: http://goo.gl/aAjTq1
A link to the Determination Notice can be found here: http://goo.gl/4VhZ2Y
Barristers: Andrew Spink QC