Tuesday, July 6, 2010

NUSRPC attornies file motion objecting to Nortel terminating medical & LTD benefits

A number of court dockets were published today on the Epiq Systems web site that are important to retirees and Nortel employees on LTD.

First of all the official "court recognized" committee of unsecured creditors has filed a joinder which basically supports Nortel's Motion to terminate US retiree medical and long term benefits and US disabled employee benefits.

Adding insult to injury, everyone should know that the PBGC (Pension Bord Guarantee Corp), which is now paying the US retirees pensions, are listed members on the unsecured creditor's committee. So the PBGC is agreeing with Nortel's cancelling of medical benefits and LTD payments.

Secondly, the Nortel US Retirees Protection Committee must have engaged a Delaware law firm to act on behalf of the retirees and LTD employees by filing an official objection.

The Law Firms engaged are:

Cross & Simon LLC and Farella Brown & Martell LLP and their objection motion may be seen in docket #3277 on the Epiq site in the right hand column.

I am really glad to see the NUSRPC take this action which means that there will be more influence on the court since the NUSRPC represents more than 400 paying members and likely to add more if the court grants the right to formation of a 1114 committee.

In the event that the court does appoint a 1114 committee then Nortel will be required to pay the legal bill.

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