Sara Thiam

The business group has written to its members warning them of imminent correspondence from Howard Smith and Blair Nimmo, of the Big Four firm, who have been appointed joint nominees in relation to a CVA proposed by the directors.

Explaining the reasons behind the move, Sara Thiam, SCDI chief executive, said: “Closer joint working across public, private and third sector has been a key feature of the last year.

“The Scottish Council for Development and Industry is unique in uniting all three in a shared mission of achieving economic prosperity for Scotland.

“In order to continue to deliver value to our members throughout this challenging year, we have reshaped and bolstered our team, and continued to deliver high-quality events and thought leadership activity.”

She added: “We are now seeking to address the final part of the jigsaw to enable us to continue to trade and grow by addressing a pension legacy obligation.”

“Approval of the voluntary arrangement will enable SCDI to continue trading for the benefit of all our stakeholders, including our employees and other creditors.”

Ms Thiam told its members that the SCDI had taken action to ensure its members continue to benefit from its valued programme of events, policy and public affairs activity, The Press and Journal reports. 

Ms Thiam continued: “Donations from our members and income from research and events cover our costs. However the contributions associated with a defined benefit pension scheme, which closed to employee contributions in 2004, had escalated in recent years.

“Despite making enhanced contributions over the years the board foresaw there would be a point in the future when we would be unable to meet our obligations.”

Ms Thiam said the pension fund and SCDI’s landlord, in respect of certain liabilities, were the only creditors whose debts were likely to be “compromised” by the CVA.

She said that the intention of the business group is to pay all other creditors in accordance with their agreed terms.

Ms Thiam concluded: “In common with many organisations who rely on events income and discretionary contributions, SCDI has experienced a reduction in income during the pandemic, which made the task of tackling our pension legacy obligations more urgent.”