THE pensions regulator has fired a dramatic warning shot in the battle over Sea Containers, the cash-strapped parent company of train operator GNER.

David Norgrove, the regulator, has issued a notice to the group saying he is considering using his powers to force it to make good its pension black hole.

If Norgrove were to carry out his threat, it would be the first time the powers have been used since the office of pension regulator was set up 18 months ago.

Sea Containers, a US-listed company that was once a sprawling transport conglomerate, went into Chapter 11 last month. It said it would be unable to make payments on all its outstanding $378m (£199m) worth of bonds. Meetings with creditors are expected to take place in New York this week.

But Sea Containers’ second-largest group of creditors are two UK pension schemes, which together cover about 1,300 staff and pensioners. Both schemes are in deficit, and would have even larger deficits were the company to be wound up. Neither covers workers at GNER, who are part of a separate rail-industry pension scheme.

Norgrove’s threat emerged in a Securities and Exchange Commission filing. Sea Containers said it had received a warning from the regulator that it was “considering exercising its powers to issue financial support directions to the company . . . if the FSDs are issued to the company, it may be liable to make a contribution to one or both of the schemes”.

The filing said the scheme trustees had advised the company that the cost of winding them up would be £134m in total.

Sea Containers noted that “these estimated costs have not been agreed by the company, and no FSDs have been issued”. It said it “does not accept that it is reasonable or appropriate for the regulator to issue FSDs”.

A spokeswoman for the pensions regulator confirmed that the organisation had never yet used its powers to direct companies to make good pension deficits. “To use these powers the regulator would have to consider it was in the best interests of the members of the scheme,” the spokeswoman said.

Sources close to the company said Norgrove might have issued the warning to underline the pension schemes’ claim to Sea Containers’ remaining assets. “He wants to make sure they have a seat at the table with the other creditors,” one source said.

Sea Containers’ best-known business is GNER, the prestigious train company that runs intercity services up the east coast main line between London and Scotland.

Last year, Sea Containers signed an ambitious new 10-year franchise deal with the government to continue running GNER, under which it will pay back £1.3 billion in premiums over the life of the contract.

Lower-than-expected sales mean GNER is now struggling to meet the premium payments. It is expected to ditch the franchise in May unless it can renegotiate the agreement.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive