Link to our Frequently Asked Questions regarding Nortel Claims Representation
Information Page
August 30, 2010 - Nortel Enters into a Stalking Horse Bid for the MSS Business with auction to take place on September 24th
On Wednesday, September 1, 2010 Nortel will be seeking, among other things, an order to approve a stalking horse agreement involving the bidding procedures and related matters in respect of the sale of Nortel's MSS business. The purchaser under the stalking horse agreement is PSP Holdings ("PSP"), with a proposed purchase price of $39 million. In order to determine if there are other parties who are interested in purchasing the business for a higher price, a bidding process will be put in place. The bidding procedures require all qualified bids to be submitted by September 21st, with an auction to take place on September 24th.
Under the stalking horse agreement, if the PSP bid is ultimately successful, it has offered to employ at least 95% of the employees of the MSS business. Any offers made will be for annual salary and target incentive that is at least equal to what was offered at Nortel. Employees will also be offered reasonably comparable positions at a location close to their current location. PSP has agreed to recognize service dates and provide substantially comparable benefits (except retiree benefits and special incentives) as employees had access to at Nortel for at least 12 months following the agreement.
We will provide additional information as it becomes available. Employees with questions can correspond with us at our ncce@nelligan.ca address.
Motion Regarding the Distribution of the Health and Welfare Trust on September 29th
A motion has been scheduled for Wednesday, September 29, 2010 for, among other things, approval of the methodology for allocation of the corpus of Nortel's health and welfare trust (the "HWT") among certain beneficiaries participating in the HWT.
The proposed allocation methodology provides that beneficiaries that have claims presently being paid out of the HWT and those whose claims that are certain to be payable at some future date, will share in the distribution of the HWT. As a result, it is proposed by the Monitor that the following beneficiaries receive distributions according to their pro rata share of the funds in the HWT:
We are reviewing the lengthy Motion Material in order to determine both the impact on and the position of the Continuing Employees in relation to the HWT and the relief being sought. We will be instructed in due course by the NCCE Steering Committee.
| IMPORTANT: Continuing Employees Should Confirm Address and Contact Information In advance of an employee claims process, its important that the remaining employees of Nortel and employees who have been transferred to new employers ensure that both Nortel and Nelligan O'Brien Payne have their correct contact information and email addresses. Many of you have provided us with your contact information in the past, but there are employees whose interests in the claims process we represent who have not yet registered with us. In the meantime, if you are aware of colleagues who have not been in touch with us or if your own contact information has changed, we encourage you and your colleagues to send us your updated contact information to the following email address ncce@nelligan.ca Employees should also ensure that their contact information is updated in Nortel's records. |
Unfortunately, we are still not in a position to advise you with certainty what the claims process will look like or when it will be announced. Based on past experience, we are optimistic that Nortel and the Monitor will be prepared to work with us to negotiate a streamlined process for Continuing Employees claims. We believe that progress will be made in the fall of 2010
June 4, 2010 - Leave to appeal denied
The Court of Appeal decided today to deny leave to appeal on a motion by a group of Nortel LTD employees who had sought to appeal the March 31 decision of the Ontario Superior Court of Justice, approving the Settlement Agreement. The Settlement Agreement ensures the continuation of health, dental, life and LTD benefits through 2010. Follow this link to view a copy of the Decision.
April 21, 2010 - Update to Nortel Continuing Canadian Employees ("NCCE")
This is intended to update NCCE members on the status of the CCAA proceedings and the steps you can take now to prepare for filing proofs of claim once the employee claims process is put in place.
You have all been following in the media the process through which Nortel is moving towards the final stages in the Companies’ Creditors Arrangement Act (“CCAA”) proceedings. Although the CCAA may be used to give companies protection from creditors while they work to restructure their debts, Nortel is using the CCAA (and the insolvency laws of other countries) to sell off its operating divisions and its other assets worldwide. We still do not know when this process will be completed. Until it is, the Company remains unable to determine the size of the “pot” that will be available for distribution to its creditors, including Nortel employees and former employees.
Many Nortel employees have accepted employment with a purchaser of Nortel assets. The employment of many others has been terminated. For those who remain at Nortel, their activities will revolve around transitioning the various divisions to the purchasers and winding down Nortel’s operations.
By Court Order dated July 22, 2009, Nelligan O’Brien Payne LLP and Shibley Righton LLP were appointed as representative counsel for Nortel “Continuing Employees”, at Nortel’s expense. The Commercial Court also formally recognized the “Nortel Canadian Continuing Employees (NCCE)” and ordered that Kent Felske and Dany Sylvain, on behalf of the NCCE, be appointed as representatives of all Canadian Continuing non-unionized Nortel employees.
On August 3, 2009, the Commercial Court issued another Order clarifying the scope of Nelligan O’Brien Payne and Shibley Righton’s representation of Continuing Employees. Under the terms of the Order, our mandate is to provide advice and representation to Continuing Employees concerning employment-related claims and potential claims under the CCAA process, including issues arising with respect to pension plans and the health and welfare trust.
If you have accepted employment with a company that purchased Nortel assets, you are still a Continuing Employee for purposes of representation by us in the claims process.
Terminated employees, pensioners and Nortel employees on disability are being represented in the CCAA proceedings by the firm of Koskie Minsky LLP in Toronto.
Many of you have provided us with your contact information, but there are Continuing Employees whose interests in the claims process we represent who have not yet registered with us. We have asked for information from Nortel that will enable us to contact all Continuing Employees. In the meantime, if you are aware of colleagues who have not been in touch with us, we encourage you to direct them to our website to provide their coordinates.
Unfortunately, we are still not in a position to advise you with certainty what the claims process will look like or when it will be announced. Based on past experience, we are optimistic that Nortel and the Monitor will be prepared to work with us to negotiate a streamlined process for Continuing Employees’ claims.
We believe that the progress will be made by early summer 2010.
When the Commercial Court appoints representative counsel for employees in a CCAA proceeding, it is doing so, in part, so that the Court and the Monitor do not have to deal with thousands of individual employees. We hope to be able, with the Company and the Monitor, to arrive at claims process that efficiently facilitates determining the value of your various claims. Although each individual’s situation is unique, the questions you have been asking over the past months have demonstrated that you share common concerns and anticipate being able to claim for many of the same types of loss.
In the FAQs we have been posting on our web site over the past months, we have identified some of the potential employment-related losses for which employees will file claims. These include:
In our role as Representative Counsel, we will assist in the filing of claims in the Claims Process once that process is established. In the meantime, we urge you to begin assembling the documentation that will support your possible claim. This will include:
We are not inviting you to forward documents to us at this time. We are preparing a website that will contain a questionnaire regarding possible claims. Once that website is completed, employees on our mailing list will receive an email advising them. Once the site is ready, the link for the website will be found at www.nelligan.ca
March 31, 2010 - Amended and Restated Former Employee Settlement Agreement
The Court has approved the Amended and Restated Former Employee Settlement Agreement, which will ensure the continuation of health, dental, life and LTD benefits through 2010. The Order approving the Settlement Agreement is available through this link.
March 26, 2010 - Decision concerning the approval of Nortel Former Employee Settlement Agreement
The decision concerning the approval of the Former Employee Settlement Agreement was released on Friday March 26, 2010. To view a copy of the decision please click here.
The Court dismissed the motion and as a consequence did not approve the Settlement Agreement. While the Court found that the agreement was fair to the former employees and employees on LTD, the agreement was not approved on account of the inclusion of a clause in the Agreement that allowed the parties to reserve their rights should changes be made in the future to the Bankruptcy and Insolvency Act. The clause was found not be fair on account that it did not provide any certainty and finality to the other unsecured creditors.
In absence of the Settlement Agreement, the funding of former employee and LTD employee benefits is scheduled to cease as of March 31, 2010. Discussions continue between the parties to resolve the issue. We will update our website once further information becomes available.
February 17, 2010 - Nortel Settlement Agreement - Funding of Pension and Benefits during 2010
Nortel, the Monitor and the former employees, including pensioners and the LTD Beneficiaries have entered into a settlement agreement involving the funding of pension and benefits during 2010.
Settlement details - Feb 8, 2010
Settlement Webinar - Feb 17, 2010
Webinar PowerPoint Presentation - Feb 17, 2010
On August 3, 2009, the Ontario Superior Court – Commercial Court in Toronto, issued an Order formally appointing Nelligan O'Brien Payne and Shibley Righton as representative counsel for Continuing Nortel Employees ("Continuing Employees") at Nortel's expense. Under the Order, Nelligan O’Brien Payne and Shibley Righton are appointed as counsel for the Continuing Employees to provide advice and representation with respect to Continuing Employees’ employment-related claims and potential claims in the CCAA Proceedings, including issues arising with respect to pension plans and the health and welfare trust.
Link here for a copy of the Order.
As a result, Nortel employee legal representation in Canada can be summarized as follows:
Continuing employees with existing or specific employment related issues or who wish to be added to our confidential email communication list should contact Nelligan O'Brien Payne at – NCCE@nelligan.ca.
July 30, 2009 - CCAA Claims Process and Proofs of Claim
A claims process for other non-employee creditors was approved on July 30, 2009. There is currently no claims process for employee claims. Once a process for employee claims has been put in place, employees will be able to submit a proof of claim seeking compensation for any employment-related losses they have suffered.
Nelligan O'Brien Payne and Shibley Righton will approach Nortel and the Monitor to negotiate a separate streamlined claims process for Continuing Employee claims. Once the claims process is established, we will send out an email to all continuing Nortel employees who are on our confidential email communications list advising them of the process. If you would like to be added to this list, please send an email to NCCE@nelligan.ca
In the interim, Continuing Employees who are seeking additional information concerning their entitlements should read our Frequently Asked Questions document at the following link: Nortel Canadian Continuing Employees FAQ
July 28, 2009 - Nortel's LTE and CDMA businessees approved for sale to Ericsson
On July 28, 2009, the Ontario Superior Court – Commercial Court in Toronto, approved the sale of Nortel's LTE and CDMA businesses to Ericsson. As part of the sale, its expected that some Nortel employees who worked in the LTE and CDMA product lines will be provided with offers of employment from Ericsson. It is not known at this time when the offers will be made but they could be as early as next week. Its also expected that employees will only be given a short amount of time to consider offers, but in any event not less than one week.
Pursuant to the agreement between Nortel and Ericsson, the offers made to employees are to be on "terms and conditions no less favorable in the aggregate" than the terms and conditions of their employment at Nortel. The agreement does not provide any details of what will be in the offers. However under the agreement, Ericsson is also not obliged to offer any equity, retiree, medical benefits, or defined pension benefit in any offer it makes, unless required to do so by law. In addition, Ericsson must also maintain the no-less-favourable terms and conditions for 12 months following the Closing Date of the transaction. The agreement preserves Ericsson’s right to make changes to employee entitlements during the 12-month period, as long as the changes are made generally applicable across its entire employee population (i.e., as long as the changes do not apply only to former Nortel employees).
Nelligan O'Brien Payne is attempting to obtain information concerning the offers in order to be in a position to advise affected employees of their legal entitlements and their options. In the interim, Continuing Employees with existing or specific employment related issues should contact Nelligan O'Brien Payne at – NCCE@nelligan.ca
July 24, 2009 - Media Release
July 22, 2009 - Nelligan O'Brien Payne and Shibley Righton appointed as representative counsel
On July 22 the Ontario Superior Court – Commercial Court in Toronto, appointed Nelligan O'Brien Payne and Shibley Righton as representative counsel for continuing Nortel employees at Nortel's expense.
Link here for a copy of the Endorsement
Justice Morawetz acknowledged that continuing employees at Nortel require legal representation to advise them of their rights with respect to employment issues.
The Commercial Court also formally recognized the “Nortel Canadian Continuing Employees (NCCE)” and ordered that Kent Felske and Dany Sylvian, on behalf of the NCCE, be appointed as representatives of all Canadian continuing non-unionized Nortel employees.
The NCCE was originally formed for those employees who were still employed on January 14, 2009, when Nortel sought protection under the Companies' Creditors Arrangement Act (“CCAA”). Any continuing Nortel employee who has not signed up with the NCCE should consider joining this group to keep track of progress, share comments or raise questions. To join the LinkedIn group NCCE (Nortel Canadian Continuing Employees) go to:
http://www.linkedin.com/groups?gid=1796107&trk=hb_side_g
Continuing employees with existing or specific employment related issues should contact Nelligan O'Brien Payne at – NCCE@nelligan.ca
April 1, 2009 - Media Release
March 10, 2009 - Media Release