Nortel Pension Holders Sue For Payments In Bankruptcy

Former employees and pensioners of Nortel have asked a Canadian judge to order the company to pay them benefits including severance and pension supplements, which Nortel has stopped paying. The former employees claim that Nortel is breaking Canadian labor laws by refusing to pay them.Nortel claims that under bankruptcy protection those pension payments are unsecured claims, and the creditors will have to “share equally in the distribution of proceeds following a restructuring” reports Bloomberg.

Nortel argued that “paying monthly benefits under the company

loading

Comments have been disabled for this post