UK - Trustees at Turner & Newell - the UK arm of US auto component manufacturer Federal Mogul - are flying to America to piece together a rescue package.
Alexander Forbes Financial Services – the independent trustee of the £1.2bn T&N scheme – is going to New York on Monday to meet corporate raider Carl Icahn, who holds $1bn (£549m) of Federal Mogul bonds. Ichan also represents the bulk of the firm’s shareholders.
Representatives of the Amicus union and the UK administrator of Federal Mogul, Kroll Butcher Phillips, will also attend the meeting.
Alexander Forbes has already rejected Federal Mogul’s offer of a £65m one-off payment to the scheme. The independent trustee wants the company to continue paying £7m a year in contributions, plus an extra £29m per year for at least eight years.
Federal Mogul, which is currently operating under Chapter 11 bankruptcy protection in the US, has vowed to make good any deficit in its American schemes. But it has refused to do the same for the T&N scheme.
Amicus met with pensions minister Baroness Hollis yesterday to discuss the plight of T&N scheme members. The union fears that the scheme’s 40,000 members will not be covered by either the assistance scheme announced in May or the Pension Protection Fund.
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