[1andrew1]

P&O not doing so well in other areas too.

P&O in dispute with pension fund over value of ships guaranteeing debt

Wide discrepancy in valuations between company and trustees for three ferries pledged against £146mn deficit

The Financial Times reported last week that the Pensions Regulator was investigating concerns that P&O, which has the largest proportion of liabilities in the Merchant Navy Ratings Pension Fund, had not paid £146mn owed to the scheme that serves about 100 groups.

P&O has indicated that the entire debt is secured by a guarantee over three of its ships — the Pride of Canterbury, Norbay and European Highlander. But according to people close to the details, P&O’s valuation of two of the ships is 40-70 per cent higher than the pension scheme’s estimates of their valuations.

A valuation of the three ships provided to the Financial Times by independent valuer VesselsValue gave them a total market price of about £45mn.

In April 2021, P&O sold two older but similar ferries, the Pride of Bruges and the Pride of York, for €5mn (£4.2mn) per ship, according to the ferry operator’s financial statements.

P&O owes the largest proportion of the £1.25bn scheme’s overall £96mn deficit, but has not made any voluntary contributions since its acquisition in 2006 by logistics business DP World, majority-owned by the Dubai Sovereign Wealth Fund. However, P&O has paid more than £80mn into the fund, which has 20,000 members, since 2016.

Guarantees are commonly used by pension trustees as a backstop in case an employer is unable to meet its obligations to a scheme.

https://www.ft.com/content/3b00d18d-...b-bac713b685ff