Sunday, February 6, 2011

Deferred compensation Nortel US

Docket 4840 on the Epiq web site contains a letter submitted by Daniel Ray on behalf of himself and acting with the approval of Nortel outlining the deferred compensation plan of 2000 that has impacted over 400 ex employees. His letter supports the company's position that the money in the fund is part of the general account and as such is only considered a claim on the estate as an unsecured creditor. His submission contains lots of attachments which outline the steps taken by Nortel to inform participants of the risk involved.

Unfortunately there is no other option according to Daniel Ray, although the company has been continuing to pay the deferred compensation to plan participants since the filing in 2009.

There have been multiple objections filed by plan participants affected, including at least one widow who has depended on these payments as a sole source of income. In spite of the fact that this money is real salary earned and set aside for future payments, Nortel is choosing to confiscate the money and deny the participants in the plan any hope of recouping all the moneys they earned. Instead they now join the queue of unsecured creditors who will be fighting over the remainder of the Nortel estate.

Considering the bonuses paid out to the remaining management in Nortel, this move smacks of Shylock extracting a final pound of flesh from the victims of Nortel's disdain and inhumanity. A once honorable and compassionate company appears to be guided now by charlatans and shysters.

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