Rok pensions threatened by £90m deficit
The administrators of Rok have revealed the company has a £90 million deficit in two pension schemes.
The social housing contractor collapsed last November with debts of around £360 million.
Former Rok employees will be hoping administrator Pricewaterhouse Coopers will be able to find a way of plugging the £90 million hole.
An update report published by Pricewaterhouse Coopers says the pension claims rank behind the claim of the bank.
The PWC report says the Pensions Regulator could issue a financial support direction, which could, pending a High Court decision involving communications company Nortel and investment bank Lehman Brothers due in December, mean the pension fund would be given priority over other creditors.
Rok, which offered building, repairs and maintenance services, had a social housing business worth £204 million. It went into administration in November leaving landlords across the country battling to keep their repairs services running.
This followed an announcement in August that its operating profit had almost halved to £4.5 million and its revenues dropped by £56.4 million.