Greater London, England -- (SBWire) -- 10/30/2010 -- The Work Foundation, the UK’s leading independent authority on work and its future, has been acquired by Lancaster University, following the appointment on 21 October 2010 of Joint Provisional Liquidators, Jason Baker and Jonathan Birch, partners at FRP Advisory LLP, the specialist restructuring, recovery and insolvency firm.
Both The Work Foundation and Lancaster University see substantial synergy in their activities, and anticipate being able to have increased influence on the change agenda, devoting expertise to research and best practice in areas crucial to the UK’s recovery and ability to thrive.
Jason Baker and Jonathan Birch were appointed following a winding up petition filed in the High Court on Thursday 21 October, citing a pension deficit that rendered the charity insolvent.
The Work Foundation was the sponsoring employer for a defined benefit pension fund established in 1951 and closed to new members in October 2001. The Scheme has around 600 members, (approximately 400 deferred members, 200 current members and three active members). Following recent discussions with various interested parties, and having received an offer for the charity’s business, after acting upon advice, the Board considered that the only mechanism available to the charity to affect a sale would be through an insolvency process. This was undertaken in consultation with all the relevant regulators and key creditors.
Jason Baker commented: “Unfortunately a pension deficit is becoming a critical issue for many organisations, both public and private, in particular, the third sector. Having met with representatives of most major creditors, of which the pension fund is the largest, it was agreed with them that the best possible outcome was to sell The Work Foundation as a going concern to an interested party where there were strong natural synergies.
“Following our engagement as advisers in early September, to facilitate the acquisition deal for The Work Foundation, we began discussions with various interested parties. Lancaster University expressed a strong interest in going into partnership with The Work Foundation and, as well as being an ideal fit, offered us the best opportunity to maximise the value of the organisation’s assets. We were able to how about assist in acheiving a sale with the support of the Board of Trustees.
“Though, regrettably, there will be a shortfall to creditors as a consequence of the sale, this will be minimised. In achieving this outcome, all 43 jobs have been safeguarded and the strong heritage of The Work Foundation has been preserved.”
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Click on the following link to view the joint statement issued by Lancaster University and The Work Foundation on 22 October 2010: http://www.lums.lancs.ac.uk/news/20911/work-foundation-alliance/
NOTES TO THE EDITORS:
Media contacts for FRP Advisory:
Georgina Swain, FRP Advisory Press Office, Tel: +44(0) 20 3301 7350, Mobile: +44 (0) 7881 523 345, Email: nationalpressoffice@frpadvisory.com
Kate Macnamara, Grayling, Tel: +44 (0)121 265 2761, Mobile: +44 (0)771 422 2793, Email: kate.macnamara@grayling.com
About FRP Advisory
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FRP Advisory LLP facilitates Acquisition of The Work Foundation by Lancaster University
Joint Provisional Liquidators, Jason Baker and Jonathan Birth, partners at FRP Advisory LLP, the specialist restructuring, recovery and insolvency firm, facilitate acquisition of The Work Foundation by Lancaster University.