Nortel Retirees and Former Employees Protection Canada (NRPC) fully supports an appeal by the monitor for Nortel’s Canadian debtors.
Last month, a U.S. bankruptcy court sanctioned an agreement by Nortel’s U.S. debtors to pay holders of Nortel Canada bonds up to an additional US$1.1 billion in post-filing interest on their claims.
The NRPC is disappointed in, and frankly confused by, the U.S. court judgement and fully supports the monitor’s application to appeal, says NRPC president Don Sproule.
“We do not believe the ruling advances settlement as it proposes a totally unrealistic amount of interest and is an agreement between friendly parties in the U.S. that excludes all other major players and therefore cannot constitute a compromise,” he adds.
Canadian, U.S. and European courts still haven’t decided how to distribute the remaining $7.3 billion in Nortel cash to its units in Canada, the U.S. and Europe.
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