Friday, October 31st10.2°C
21625
22501

Lawyer for Nortel pensioners say former employee face 'significant losses'

TORONTO - A lawyer for former Canadian Nortel employees says tens of thousands of pensioners have faced "significant losses" since the former technology giant folded five years ago.

"From the point of view of the pensioners, this is an important issue," Paul Steep, in his initial remarks, told the two judges overseeing the cross-border bankruptcy trial.

The second day of opening arguments unfolded on Tuesday with representatives for bondholders and various international sections of Nortel's now defunct operations stepping up to the podium to make their case for a share of US$7.3 billion earned in the sale of the former technology giant's assets.

A decision is also expected on the future of 20,000 Nortel pensioners who have seen their benefits dramatically reduced since the company filed for bankruptcy in 2009.

The trial, expected to last until the end of June, is being overseen at the same time by a judge in Toronto and another in a courtroom in Wilmington, Del., via closed-circuit video feed.

The impact on pensioners has varied, with the pensions of former employees in Ontario cut by 30 to 35 per cent while, outside the province, pensions were cut by 45 per cent or more, said Anne Clark-Stewart, a spokeswoman for the Nortel Retiree and Former Employee Protection Canada, a group representing pensioners.

Health, dental and medical benefits, as well as life insurance, were all cut off in 2010, she added.

At its height from 1999 to 2000, Nortel was worth nearly $300 billion, employed more than 90,000 people globally and was regarded as one Canada's most valuable tech companies.

In 2009, the company filed for bankruptcy in North America and Europe, shedding thousands of jobs. The company was felled by changing market conditions, economic upheaval and an accounting scandal that devastated its stock price.

Since its fall, Nortel broke apart and sold off various chunks of its business, including patents and wireless technology, which are now at issue.

The cost of Nortel's demise has climbed above US$1 billion during the past five years, with legal expenses eating away at money that could be divided among the various parties.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14613.32+154.63
S&P CDNX769.59-2.06
DJIA17390.52195.10
Nasdaq4630.742+64.604
S&P 5002018.05+23.40
CDN Dollar0.8876-0.0058
Gold1166.30-32.2999
Oil80.55-0.35
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.85+0.63
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 



23028

FEATURED Property
210238763 Puckett Rd.
10089531/10089532 bedrooms
$389,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22620