UK's Top Court Says Lehman Pension Funds Aren't Prioritized

Law360, New York (July 24, 2013, 5:48 PM EDT) -- The U.K.’s Supreme Court on Wednesday ruled that pension funds vying for position in Lehman Brothers Holdings Inc. and Nortel Networks Inc. bankruptcies cannot jump ahead of other creditors, overturning rulings which supported a regulator’s order that the defunct companies must funnel about £2.25 billion ($3.6 billion) to pensioners.

In a unanimous decision, the U.K.’s top court found that when a bankrupt company is hit with a financial support decision by the country’s Pensions Regulator, that counts as a provable debt of the company and not...
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