Insolvent Work Foundation sold by FRP Advisory

Advisers from
FRP
Advisory have sold insolvent think-tank
The Work
Foundation to
Lancaster
University in a pre-packaged deal.

Jason Baker and Jonathan Birch of FRP Advisory were appointed as joint
provisional liquidators, following a winding-up petition based on the
foundation’s pension deficit that rendered the charity insolvent.

Following discussions and having received an offer for the charity’s
business, the foundation’s 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

The 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).

Baker said: “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.

“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.

“Unfortunately a pension deficit is becoming a critical issue for many
organisations, both public and private, in particular, the third sector.”

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