Friday, March 26, 2010

Judge rejects the Canadian Settlement Agreement

Justice Morawetz of the Superior Court of Justice of Canada has rejected the Settlement Agreement that was presented to him on March 3rd through 5th. His report can be found on a link provided on the Koskie Minsky site.

The NRPC committee is reviewing the details and working with Koskie Minsky to understand the implications and next steps and will update the NRPC website as more information is available.

So what took the judge so long to make up his mind? The hearing finished on March 5th and he knew that the funding arrangement with Nortel would end on March 31st. So why did he wait until Friday the 26th to issue his findings? That only leaves 3 days next week to work out any adjustment if possible. I smell a rat.

Is his statement, the judge found that clause H2 in the agreement introduced too much uncertainty for the bondholders and other creditors. Really! What about the uncertainty of the pensioners? Now we don't know what is going to happen. Is the pension going to wind up next week with us all getting a reduction right away? Or what? How about that uncertainty?

It seems that this was orchestrated so that the pressure will be on the NRPC and the CAW to cave in and remove the H2 clause from the agreement. That's the clause which gives us the right to take advantage of any changes in the Canadian law regarding BIA which might give pensioners preferred status over other creditors. So by removing that clause are we giving up that right? Maybe its a moot point anyway since the Canadian government seems to move just as slowly as the US in making changes happen.

In any event, there probably isn't enough time for the NRPC and Koskie Minksy and all the other parties to renegotiate this. Thanks a lot Judge M.!!!

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