Tuesday, December 8, 2009

Nortel Monthly Operating report on Epiq Web Site

The 9th Monthly operating report for Nortel has been issued as docket #2088 on the Epiq website. It contains financial data for October 2009 and year to date information. The following are some notes on two particular items that are of interest to US and Canadian retirees and creditors.

There have been 5773 timely filed claims sent to Epiq. They total $16.890 Billion US in liquidated and unliquidated claims. Only one proof of claim has been objected to so far by Nortel. It is the IRS claim for $3.017 Billion. No orders regarding the claims have been entered yet by the US courts and all are considered part of a group subject to compromise.

The Canadian company, NNL, has been operating using funds provided by NNI as part of an Interim Funding and Settlement agreement. (IFSA) The normal Transfer Pricing Agreement (TPA) was suspended as of January 2009. The Canadian company and the US company with the support of the creditor's committee and the bondholder group entered into the IFSA in June 2009. This agreement only covered costs up to September 30th 2009. Further arrangements have not yet been worked out for the 4th quarter 2009 and periods beyond December 31 2009. Discussions are underway but no decisions have been made. This could have a serious impact on the ability of NNC to continue its operations, which in turn has ramifications on the pension payments. If no further funding is approved, NNC will not have money to continue operations and the Canadian pension fund would have to be wound up.

You can access the report on the Epiq web-site, see right hand column for web-site link, and then search under dockets for number 2088.

No comments:

Post a Comment