I understand that the pension schemes covering all employees in the Republic, apart from a scheme covering two former CEOs, had sufficient funds to meet all of the entitlements provided under the scheme but that there was not sufficient funds to pay some discretionary benefits that employees had hoped to receive. I have only very limited information available about the scheme covering the former CEOs but I understand that this may have been significantly underfunded.
As regards the Richardsons pension scheme, which covered the employees based in Belfast, I understand that the scheme currently believes that it will only be able to pay active members, that is the employees still working at the time the company ceased operations, less than half their entitlements under the scheme. However, the UK Government recently announced proposals to deal with the issue of pension shortfalls arising from insolvencies but I am not aware of the impact, if any, this may have on the shortfall in the Richardsons scheme. In addition, I understand that the trustees of the Richardsons scheme have submitted a claim to the liquidator of IFI, though the status of this claim has not yet been established. Until these and other issues are determined it is not possible to precisely quantify the shortfall involved.
I understand that the liquidation is progressing in an orderly and efficient manner and that considerable progress has been made in relation to the realisation of the company's assets. However, while the company's principle properties at Arklow and Marino Point, Cork, have been placed on the market, I am advised that it may take some time to sell them.
I also understand that most of the company's obligations to secured creditors have now been settled while payments to preferred creditors, which would include some amounts due to former employees, have been or are in the course of being made. Unfortunately, it is unlikely that any payments will be made to unsecured creditors, including trade creditors, until the main property assets are sold, which I understand could take some time. At this stage, I am not in a position to determine the prospective level of payment to unsecured creditors.