03 March 2010
The Pensions Regulator's move to make a $3.4bn claim against
Nortel Networks has been halted by the Canadian courts. The
Regulator was acting on behalf of 40,000 members of the UK pension
scheme which was left underfunded when Nortel Networks filed for
bankruptcy.
However, Canadian judges rebuffed the claim after lawyers argued
such a proceeding would be costly and distracting to staff. The
Regulator will now be treated as one of Nortel's many creditors
under the Companies' Creditors Arrangement Act.
