Thursday, February 18, 2010

US and Canadian courts to hear motion on stay against UK Pension claim.

The UK Pension Protection Fund organization has filed a claim against Nortel in Canada and the USA for between $2B and $3B. (multiple submissions) Both the USA and Canada courts have provided rights that preclude such a claim. It is argued that the claim should only be filed against the UK company. Various motions have been made to the US and Canadian courts to uphold the stay on the UK claim and will be heard at an upcoming session in the US court on Feb 26th 2010. See docket #2449 on the Epiq web site.

In comparison the PBGC has filed a claim for $593M for the US pensioners due to the shortfall in the US pension fund. The Canadian claim for pensioners has not been filed yet because the value of the trust fund, as calculated from the latest review in Dec 2009, has not yet been officially recorded by Nortel. Also the claim process for pensioners has not yet been defined, since in the case of the Canadian retirees they are being represented, en masse, by the Koskie Minsky Law Firm which will file the aggregate claim on behalf of the pensioners.

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