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Sea Containers receives financial support warning from U.K. pension regulator
By Caroline Salls
Pittsburgh, Oct. 30 - Sea Containers Ltd. received a notice from the United Kingdom government pensions regulator warning that the regulator might issue financial support directions to the company under U.K. pension legislation that would require a financial contribution to two pension schemes, according to an 8-K filing with the Securities and Exchange Commission.
The warning is in connection with U.K. subsidiary Sea Containers Services Ltd.'s 1983 and 1990 pension schemes.
If the federal support directions are issued, the company may be liable to make a financial contribution to one or both of the schemes, which may be greater than the sum payable by the company for pension liabilities under the terms of a support agreement between Sea Containers and Sea Containers Services.
The current estimates of the cost of winding up the schemes, including the cost of purchasing annuities to pay projected benefit obligations to scheme participants, would be about $201 million for the 1983 scheme and about $51 million for the 1990 scheme.
Because the schemes are multi-employer plans, the liabilities under them are shared among the participating companies.
The company said it is considering its reply to the regulator's warning notices and does not accept that it is reasonable or appropriate for the regulator to issue financial support directions.
Sea Containers, a Hamilton, Bermuda-based provider of passenger and freight transport and marine container leasing, filed for bankruptcy on Oct. 15 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-11156.
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