Arcadia Group to be repaid 35 million pounds from BHS

London - Despite a 571 million pound deficit in BHS pension fund, Sir Philip’s Green Arcadia Group is set to recover 35 million pounds from the collapsed retail group.

Administrators overseeing the liquidation, Duffy & Phelps, have confirmed the repaid and a report sent to the Companies House says Arcadia Group “will be repaid in full,” from the floating charge it had in BHS assets as security. Green previously provided loans to Dominic Chappell, head of Retail Acquisitions, the consortium which bought BHS for 1 pound, and as BHS’s chief creditor, Green stands first in line to receive payment ahead of unsecured creditors, including the pension fund, which may get as little as 2p to 3p to the pound. Seeing as the pension fund has a 571 million pound deficit, this mean that the fund could regain just 17 million pounds.

The report filed by the administrators also show three other financial firms which lent money to BHS are also likely to get 100 percent of their loan back. Green previously pledged to work alongside of the pension regulator to “sort” the BHS pension deficit. During a parliamentary hearing, he said he was “sorry” for what happened to the high street retailer and agreed to work on a solution to the deficit. Now, Lord Myners, a former Government minister has suggested that Green contribute over 400 million pounds to resolve the pension fund deficit. Lord Myners told Sky News that Green would have to offer a large sum of money to buy out scheme member with smaller benefits, which “should be fine as long as those targeted receive genuinely independent advice and are not strong-armed into acceptance".

He noted that any deal made with the Pension Protection Fund would likely involve “[the] assets transferred to the PPF [matching] the liabilities transferred,” adding that it would be "unconscionable for any shortfall to be dumped on solvent schemes through the levy.”

Photo: Parliamentary Live