The Pensions Regulator, a UK watchdog whose job is to pursue companies that renege on their retirement payments to their staff, has settled out of court with a Belgian textiles company, Van der Wiele, for slightly over 1% of what it first asked for - a decision it was at pains to stress is a one-off.

Van der Wiele, which makes carpet and velvet sewing machines, was served with a notice for £5m last year to rescue the underfunded UK pension plan of its subsidiary Bonas, manufacturer of 'jacquard' looms. But the company challenged the order in the Regulator's 'Upper Tribunal', a review body.