Monday, July 15, 2024
HomeNEWSGARNER INSISTS PENSIONERS WILL BE PAID

GARNER INSISTS PENSIONERS WILL BE PAID

Disgraced former Norton Motorcycles boss Stuart Garner is now blithely claiming that members of the three pension schemes he ran, who unwittingly invested all their retirement savings in his eventually bankrupt company, will be fully compensated. BDN financial editor Roger Willis reports.

Garner apparently believes that pensioners, who are owed around an estimated £14m, will get satisfactory access to funds held by insolvency practitioner BDO, Norton’s administrator, after selling what was left of the firm to India’s TVS Motor. Of course, first suck of the sauce bottle will go to the banks and other institutions holding charges against loans or mortgages. Preferential creditors led by HMRC and Norton’s employees follow, as well as BDO itself in terms of considerable administration fees. Then unsecured creditors, made up of suppliers and customers who had prepaid deposits for bikes they never received, are next in line.

Presumably the plump professional fees of Dalriada Trustees, a company imposed by the Pensions Regulator to replace Garner as sole trustee of the three schemes last year, will be factored in somewhere too. Investors, including the actual pension schemes he emptied out into Norton’s coffers, are last in this queue. 

Shortly after he was excoriated for dishonesty in an adjudication by the Pensions Ombudsman and ordered to reimburse the Commando 2012, Donington MC and Dominator 2012 pension schemes forthwith, Garner spoke to the Leicester Mercury newspaper and its Leicestershire Live website. He said: 

“I’ve worked with BDO, who are [sic] sitting on £16m cash from the Norton asset sale with a further several million expected to come in from Norton property sales. The money is not missing. It is all in the business and its assets. No-one has agreed what the pension investor amount is yet. But it looks likely they will receive all their capital back.”

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