Nortel Allocation Dispute – Victory for Canadian Pension Claimants and Former Employees

We are pleased to offer our congratulations to our affiliate firm, Koskie Minsky LLP, on the consistent May 12, 2015 decisions of the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court which require that the allocation of assets from the sale of Nortel’s businesses and intellectual property be based on a pro rata approach.

Koskie Minsky LLP, which represented former and retired Nortel employees in Canada in the above cases, reports:

 The “lockbox” of funds from the patent and business sales is to be allocated proportionately based on the aggregated claims in each of the three jurisdictions. All creditors, including Canadian pensioners and disabled employees, are to receive a fair and equitable payment of their claims. The decisions take an unprecedented approach, and are a major breakthrough in the cross-border litigation. 

The Canadian Creditor’s Committee (CCC), representing employee and pension interests, advocated pro rata as the most equitable allocation method, and it best reflected the reality of the way that Nortel functioned globally as a highly integrated organization.

Copies of the decisions, Judge Gross’ Allocation Order and information regarding the allocation dispute (including pleadings and summaries of the proceedings) are available on Koskie Minsky LLP’s website.