Sunday, June 5, 2011

Nortel US files for formation of 1114 committee

Nortel has filed in the US court for the appointment of a 1114 committee to be established. This is the first step towards eliminating retiree medical and other non pension benefits as well as long term disability benefits. The committee will be staffed with retirees who will represent the interests of those of us who are receiving retiree medical and other benefits. I don't know who will be on that committee yet . I imagine the US NRPC will be involved since they originally were able to stop Nortel from eliminating the benefits unilaterally. Nortel claims it is costing them $12 million per year to keep supporting the medical and LTD programs for retirees and LTD employees. Considering the costs of all the lawyers now involved this seems to me to be a much better use of the estate funds than handing them over to a bunch of legal vultures who have no vested interest in the welfare of retirees or of Nortel for that matter.

No comments:

Post a Comment