SCDI starts insolvency process amid pension problem

SCDI CEO Sara Thiam

Prominent Scottish business group the Scottish Council for Development and Industry (SCDI) announced it has launched a proposal for a Company Voluntary Arrangement (CVA) — a formal insolvency procedure — as it addresses an “urgent” pension legacy obligation.

The SCDI said: “SCDI has launched a proposal for a Company Voluntary Arrangement (CVA).

“Approval of the proposal will enable us to continue to trade and grow and will benefit all of our stakeholders, including our employees and other creditors …

“Donations from our members and income from research and events cover our costs.

“However the contributions associated with a defined benefit pension scheme, which closed to employee contributions in 2004, had escalated in recent years.

“Despite making enhanced contributions over the years the board foresaw there would be a point in the future when we would be unable to meet our obligations.

“The pension fund and SCDI’s landlord (in respect of certain liabilities) are the only creditors whose debts are proposed to be compromised by this arrangement.

“The intention is to pay all other creditors in accordance with their agreed terms.

“Members and creditors will receive correspondence from the Joint Nominees, Blair Nimmo and Howard Smith of KPMG LLP which explains the CVA process in full and the next steps.”

SCDI Chief Executive Sara Thiam said: “In common with many organisations who rely on events income and discretionary contributions, SCDI has experienced a reduction in income during the pandemic, which made the task of tackling our pension legacy obligations more urgent.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.