Judge refuses to sanction reduction in capital reserves

A judge has refused to sanction a €500m reduction in Aer Lingus group’s capital reserves to pay dividends to shareholders unless the airline makes provision for potential legal claims resulting from the €930m deficit in the Aer Lingus pension schemes.

The shortfalls in the general and pilots’ pension schemes would seem to constitute a contingent future claim against Aer Lingus, Mr Justice Roderick Murphy said in the High Court yesterday.

In those circumstances, court approval of the resolution to reduce the capital reserves was subject to a condition that Aer Lingus provide for potential claimants arising from the pension funds deficit, he found.