Monday, October 25, 2010

Monitor's 55th report on Nortel status

Ernst & Young have posted their 55th report on their website.
The cash position reported is $5.9B cash, with $749 in US, $189M in Canada,$749M in UK and Emea, and $461 APAC for continuing operations.

Some comments by the Monitor.

The Stay Period presently expires on October 29,2010. The Applicants are seeking a 122 day extension of the Stay Period up to and including February 28, 2011. As stated above, based on the cash flow analysis including the assumptions contained therein, the Applicants have sufficient cash resources to fund operations through the requested stay extension.

Termination payments.

On September 17, 1,158 former employees were notified by mail they were eligible for a maximum payment of CAD $3,000 from the Termination Fund. These eligible former employees were requested to confirm their contact information and in certain cases, where service was given prior to 1996, and to elect whether or not to direct part or ll of their payment into an RRSP as an eligible retiring allowance. This had to be completed by October 15, 2010 in order to receive their payment by early November 2010. If this deadline was not met, the payment wil be processed as soon as possible after the confirmation is received by Nortel.

On September 23,2010,279 former employees who were not eligible for a payment from the Termination Fund were notified of being ineligible by maiL.

As of October 15, 2010,78% of former employees who were eligible for a payment from the Termination Fund have returned their confirmation to the Company. It is anticipated these payments wil be processed by early November. The Monitor understands that once these payments are processed, the Company wil attempt to contact those who have not responded in order to reach as many of the eligible former employees as possible.

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