Johnston Press pre-pack concerns

Further concerns have been raised over last month’s sale of Johnston Press, as the influential chairman of a House of Commons committee called for action from the pensions regulator.

Frank Field, chairman of the work and pensions select committee, said there were “serious doubts” about the prepack administration which saw the publisher of the Scotsman sold to bondholders, putting pensions at risk of cuts.

Publishing his correspondence with the Pension Protection Fund (PPF) and the Pensions Regulator (TPR), Mr Field said worrying details had emerged around the process.

In one letter, PPF chief executive Oliver Morley said the firm offered no evidence there was a “burning platform” urgency driving the sale.

Mr Morley said: “We had been led to

“Called for action from the pensions regulator”

believe that the group actually had more than adequate cash reserves, including enough to pay the next pension contribution amounting to circa £800,000 due on November 18 and bondholder interest due in December.”

TPR chief executive Lesley Titcomb said the watchdog was considering whether “further investigation of the rationale for the prepack may be warranted”.

Mr Field said: “It doesn’t take a genius to work out that a company that dumps its pensions liabilities just days before it has to put £800,000 into the pension fund might be up to no good.

“It’s clear that the PPF, which is left to foot the bill, has serious doubts about this pre-pack deal. The Pensions Regulator has promised to be quicker and tougher – now would be a good time to start.”