The Pension Protection Fund said on Thursday it would vote in favour of proposals for a company voluntary arrangement made by struggling retailer Toys R Us. The creditor vote has since taken place.
Malcolm Weir, the PPF’s director of restructuring and insolvency, said: “We can confirm that an agreement has now been reached and we will now be voting in favour of the proposals at the CVA meeting today.”
Toys R Us has agreed to pay £9.8m into the UK pension plan, composed of £3.8m in 2018, with a further £6m promised over 2019 and 2020, and shortened the deficit recovery plan to 10 years from 15 years.
According to Weir, the business is seeking additional support from the US parent company for the new plan for the pension scheme, and the trustees will have greater powers if any of the above conditions are not met.
Trustee chair Graham Barker and Tom Lukic, director at Dalriada Trustees, appointed as professional trustee to the scheme, said the scheme would be writing to update all scheme members after the creditor vote.
According to The Telegraph, another 98 per cent of creditors supported the proposals made on Thursday.
