This page provides an update on the Companies’ Creditors Arrangement Act (CCAA) proceedings in Nortel, including updates on when we expect the CCAA proceeding to conclude and the consequences for Nortel employees.
Update. June 8, 2017
You will see here the Notice of Initial Distribution Date published by the Monitor on June 8, 2017. The initial cheque will be mailed to you on July 6, 2017. The cheque will be for approximately 45.49% of your claim.
If you have recently changed your mailing address, you have until June 29, 2017 to advise the Monitor of your change of address. You may do so by filling out the Change of Address Request Form and sending it to the Monitor by mail, fax, or e-mail address set out on that form.
Update. January 24, 2017
By way of a short update on the Nortel Proceeding, on January 24, 2017 the Ontario Court approved the settlement allocating the assets of the Nortel companies between various jurisdictions. You can see the reasons for the Court’s decision here. This brings the creditors of Nortel – including former employees and employees who transferred to other companies – closer to receiving a share of their claim against Nortel.
One small group of disabled former employees has appealed this decision. It is hoped that the appeal will be dealt with quickly, with a minimum of delay for the eventual payment of Nortel claims. We will post another update once that appeal has been dealt with.
Live webinar – November 30, 2016 at 5:00 p.m.
A free live webinar was hosted on Wednesday, November 30th at 5:00 p.m. to provide an update on the CCAA proceedings in Nortel, including an update on when we expect the CCAA proceeding to conclude and the consequences for Nortel employees.
Watch webinar recording here:
October 12, 2016 – Nortel Claims Update
On October 12, 2016, a Global Settlement and Support Agreement was reached which provides for a resolution of the allocation dispute regarding approximately U.S. $7.3 billion of sale proceeds, as well as various other disputes between creditor groups of Nortel.
You can see a copy of Nortel’s Press Release about this Global Settlement and Support Agreement here.
Under this Agreement, 57.1065% of the sale proceeds (approximately U.S. $4.143 billion) will be allocated to Nortel Canada, in addition to other amounts relating to the sale of I.P. addresses currently held subject to various court orders.
The vast majority of this amount will be distributed to the creditors of Nortel Canada, including former employees and the pension plan. This distribution, it is hoped, will take place in the first half of 2017.
It is too early to say what this means – in terms of percentage recovery – for each of the former employees and pensioners of Nortel. We will post another update as soon as that information is available.
If you have recently moved (or moved since you left Nortel) and have not reported your change of address, please complete a Change of Address Form, which is available on our website by clicking here.
May 2, 2012 – Update on Compensation Claims Process
The Monitor has been reviewing the Requests for Correction and Proofs of Claim submitted to them. There were a total of approximately 2000 Requests for Correction and Proofs of Claim received. The Monitor’s process of review consists of identifying the requested corrections or claim, reviewing supporting documentation, and communicating with the claimants for additional clarification or documentation where necessary. This detailed process is necessary to ensure the Requests for Correction and Proofs of Claim are accurately and fully understood before any determinations are made regarding the claims.
In order to expedite matters, the Monitor is not waiting until responses to all 2000 of the Requests for Correction and Proofs of Claim have been prepared to begin responding. The Monitor has advised they will be sending responses to approximately 400 of them in the next several days. The Monitor will be responding to the balance in similarly sized batches over the next number of months.
PLEASE NOTE: YOU DO NOT HAVE TO DO ANYTHING IF YOU FILED A REQUEST FOR CORRECTION OR A PROOF OF CLAIM. THE MONITOR WILL RESPOND IN DUE COURSE. THE FACT THAT SOME PEOPLE WILL RECEIVE A RESPONSE BEFORE OTHERS HAS NO SIGNIFICANCE.
If you disagree with the communication from the Monitor (whether it be a response to your Request for Correction or your filed Proof of Claim) please note that you must submit a Notice of Dispute within 28 calendar days of the communication being mailed to you. As representative counsel, we can assist you with reviewing any response received from the Monitor and, if we deem it appropriate, prepare any required Notice of Dispute. If you have any questions or concerns regarding the communication from the Monitor, please email us at email@example.com.
January 24, 2012 – Update on Information Statement Packages for employees transferred, terminated, or retired in 2011
In accordance with the Court Approved Compensation Claims Process, the Monitor has 21 business days from December 31, 2011 (i.e. by January 30, 2012 ) to send, by mail, an Information Statement Package to Nortel employees who were either transferred, terminated, or retired during the calendar year 2011 and who have a claim against the Nortel estate. It is also possible that the Monitor believes that you do not have a claim, in which case you will be receiving a letter from the Monitor informing you that you do not have a claim and providing you with a blank proof claim form.
We are advised by the Monitor that these packages/letters were mailed on Friday, January 20th.
You will have an opportunity to review your Information Statement Package and to submit a Request for Correction if there are any errors in the personal data that was used to value your claim. If you believe that you have a claim that is not covered in your Information Statement Package or if you disagree with the Monitor’s assessment that you do not have a claim, you will have an opportunity to file a Proof of Claim. Please note that the deadline to submit a Request for Correction or to file a Proof of Claim form is 50 regular days from the date of the package or letter and must be submitted by 4:00pm Eastern Standard Time.
If you are a transferred employee, our firm can assist you with this process and reviewing your situation. You should contact us as soon as possible through our client portal at https://portal.nelligan.ca and provide us with the relevant information and documents, including the letter from the Monitor, Form A and Form B of your Information Statement Package.
If you are an employee terminated directly from Nortel or a retiree, then you should contact the firm of Koskie Minsky in Toronto for assistance.
If you have not received your package within two weeks, please contact your appropriate legal representative.
Update regarding Delivery of Information Statement Package
If you have not yet received an Information Statement package, please note that packages were mailed out between November 3 and 7, and delivery time will vary depending on your location. It is entirely possible that the package could still be en route to you by mail.
It is also possible that your package may have been mailed to an incorrect address or that an Information Statement has not been prepared for you. For example, if you were an active employee as of Dec 31, 2010 and were transferred after Dec 31, 2010, packages will only be sent out within 21 business days after Dec 31, 2011. It is also possible that the Monitor believes that you do not have a claim, in which case you will be receiving a letter from the Monitor informing you that you do not have a claim and providing you with a blank proof claim form.
As the package may still be in the mail, please wait until November 14, 2011 to contact Nelligan O’ Brien Payne or the Monitor about the status of your package. If you have not received a package by November 14, please contact us or the Monitor to inquire whether an Information Statement package was prepared for you.
If you have recently moved (or moved since you left Nortel) and have not reported your change of address, please complete a Change of Address Form, which is available on our website or the Monitor’s website.
If you do not receive an Information Statement before the Nov. 11 webinar or the live information session on Nov. 17, you can attend the sessions without an Information Statement. Once you eventually receive your package you will be able to access the webinar presentation online at our portal. You will also be able to contact us and the Monitor by telephone or by email to ask questions.
If you have received a letter from the Monitor, informing you that you do not have a claim or feel that a claim is absent from your Information Statement and you are concerned whether that assessment is correct, please log into our website portal to complete our questionnaire. Please then send us an email at firstname.lastname@example.org with your questions regarding your situation and possible claims that you feel you may have. Be sure to include your Information Statement. We will then review your email and respond to you.
Webinar on November 11, 2011 and Live Information Session on November 17, 2011
An informational webinar was held in order to provide an overview of the Court approved Compensation Claims Process, including the methodology and Information Statement packages. The webinar allowed Active employees and Non-Unionized Transferred Employees to ask any questions they had regarding the Compensation Claims Process. Active or Non-Unionized Transferred Employees were invited to attend the webinar.
For more information regarding your claims, representation, and to submit questions or concerns to us, we have created a Nortel Communications Portal for both Active and Transferred Canadian employees of Nortel. To access the portal or login please click here .
If you have not previously registered to confirm you are part of our group please create an account on this communication portal.
Information for Live Information Session – November 17, 2011
A live information session was held to provide an overview of the Compensation Claims Process, including information about the Information Statement Package process.
Should you have any questions please email us at email@example.com or call us at 1-877-542-9254
Update on Information Statement Packages
In accordance with the Court Approved Compensation Claims Process, the Monitor shall within 21 business days of October 6, 2011 (i.e. by November 4, 2011) send, by mail, an Information Statement Package to individuals who have a claim against the Nortel estate.
You will have an opportunity to review your Information Statement Package and to submit a Request for Correction if there are any errors in the personal data that was used to value your claim. If you believe that you have a claim that is not covered in your Information Statement Package, you will also have an opportunity to file a Proof of Claim. Please note that the deadline to submit a Request for Correction or to file a Proof of Claim form is at 4:00pm Eastern Standard Time on January 6, 2012.
Please note that active employees will receive a letter to advise them that their Information Statement package will only be prepared and sent to them after they cease employment with Nortel. Active employees will have a rolling bar date of 50 days after having been sent their information packages to submit a Request for Correction or a file a Proof Claim.
There are a small number of transferred employees who may have filed claims in the US Chapter 11 Proceedings. For those individuals, the Monitor is seeking an order to delay the mail out of the Information Statement Packages as under the Cross Border Protocol, the Monitor is required to consult with the US estate to determine if the claims against both estates are overlapping. If the Order is approved, the Information Statement Packages for these individuals will be mailed out 7 days after the consultation process is completed. If you are a transferred employee who has filed a claim in the Chapter 11 Proceedings, we invite you to please contact us at firstname.lastname@example.org to provide us with information regarding your situation, including a copy of the claim filed by you in the Chapter 11 Proceedings.
October 7, 2011 – Compensation Claims Process Approved by Court
On October 6, 2011 the Ontario Superior Court of Justice approved the Compensation Claims Methodology Order and the Compensation Claims Procedure Order (the “Compensation Claims Process”). A copy of the Orders can be found by clicking here.
The purpose of the Compensation Claims Process is to value the claims of all employees and former employees of Nortel. As counsel to the current and transferred employees of Nortel, we are holding an informational webinar to provide an overview of the Compensation Claims Process, including the Methodology and the Information Statements, on November 11, 2011 at 5:00 pm. In addition, we will present a live information session on November 17, 2011.
Information Statement packages and Letters from the Monitor
You will be provided with an opportunity to review your Information Statement Package and to make any corrections to the data in the package that was used to value your claim. If you feel that you have a claim that is not covered in the Personal Information Package, you will also be provided with an opportunity to file a proof of claim.
Information Statement Packages will be sent to transferred employees of Nortel within 21 business days of October 6, 2011. If Nortel and the Monitor have determined that a transferred employee does not have a claim under the approved methodology, a letter will be sent along with a blank proof of claim form to allow you to file a claim.
Please note that the deadline to make any correction to the Information Statement and to file a proof of claim form is at 4:00pm Eastern Standard Time on January 6, 2012.
Active employees will receive a letter within 21 days to advise them that their Information Statement package will only be prepared and sent to them after they cease employment with Nortel.
Please check our website and the communication portal frequently in order to keep informed about key dates and developments, including the place and time for the information session and to register for the webinar.
September 26, 2011 – Webinar regarding the Proposed Compensation Claims Process
An informal webinar providing overview of the proposed Compensation Claims Process, including the proposed methodology and the Information Statement process was held on September 26, 2011.
September 20, 2011 – Motion to Approve Compensation Claims Process to be Heard on October 6, 2011
Nortel has brought a Motion seeking the approval of a Compensation Claims Process for employee and former employee claims. The documents have now been filed with the Court. The motion to approve the Compensation Claims Process will be heard by the Court on October 6, 2011. The motion record can be found by clicking here.
The Company, the Monitor and the Representatives of the various employee groups have worked together for the last of year to arrive at a proposed compensation claims process that efficiently facilitates determining the value of your various claims based upon an agreed methodology. Should the Compensation Claims Orders be approved by the Court, the Applicants and the Monitor, with actuarial assistance, will complete Personal Information Statement Packages using the Court-approved methodology for employees and former employees believed to have claims.
Please note that active Nortel employees will only receive packages after they have either been terminated by Nortel or had their employment transferred to a Purchaser.
You will be provided with an opportunity to review your Personal Information Statement Package and to make any corrections to the data in the package that was used to value your claim. If you feel that you have a claim that is not covered in the Personal Information Package, you will also be provided with an opportunity to file a proof of claim.
Client Communications Portal
We have also created a communications portal for Active and Transferred Non-unionized employees. The purpose of portal is to facilitate communication with Active and Transferred Canadian employees of Nortel regarding the claims process and their claims.
On this portal, you will be able to:
- Set up your profile;
- Complete a questionnaire to provide us with information related to your specific situation and provide us with relevant information regarding your personal situation and possible claims;
- Submit documents that relate to your personal situation and the possible claims you may have. The documents and responses to the questionnaire will assist us to respond to your questions or concerns regarding your claims and the claims process; and
- Submit questions regarding your claims and personal situation.
July 18, 2011 – Nortel Patent Sale and Potential Employee Transfers
On July, 11 2011, the Commercial Court issued an Order approving the sale of Nortel’s patents to Rockstar Bidco LP. Pursuant to the Sale Agreement between Nortel and Rockstar, some Nortel employees may be offered employment with Rockstar. Employees offered positions will have at least 7 days to consider any offer. The transferring employees are guaranteed to receive the same base salary and annual incentive opportunity, a comparable position at a reasonably continguous location and will have their prior years of service recognized by Rockstar. Rockstar has agreed to offer employee benefits that are “no less favourable in the aggregate” than those provided by Nortel when considering total compensation, with the exception of defined benefit pension, equity, and retiree benefits (which are not protected). To the extent that benefits offered are not as favourable, transferring employees will receive additional cash compensation in lieu. The guarantee of equal compensation will only be for a period of 12 months. In addition, accrued vacation will be carried over to Rockstar.
Continuing Employees with questions can contact Nelligan O’Brien Payne LLP at NCCE@nelligan.ca
Update on Pension Plan
Members of Managerial and Non-Negotiated Pension Plan, should expect to receive a letter from Morneau Shepell, the current Administrator of the Plans, in the next few weeks providing them an update. This letter will advise Plan members of important issues relating to pensions, including the upcoming pension reductions that some Plan members will experience effective August 25, 2011.
For more information please visit the Morneau Shepell’s website by clicking here .
June 9, 2011 – Leave to Appeal the HWT Decision Denied
The Supreme Court of Canada issued a decision earlier today in respect of Nortel’s Health and Welfare Trust (HWT). A small group of 36 dissenting LTD beneficiaries have been denied leave to appeal from a decision of the Ontario Court of Appeal dated January 7, 2011. The Ontario Court of Appeal Decision denied leave to appeal a decision of the Ontario Superior Court of Justice dated November 9, 2010, which approved the allocation of the assets of the HWT.
The Court approved methodology for allocation provides that beneficiaries who have claims presently being paid out of the HWT and those whose claims that are certain to be payable in the future, will share in the distribution of the HWT. As a result of the Court’s decision, the following beneficiaries are entitled to distributions according to their pro rata share of the funds in the HWT:
- Pensioners for Pensioner life insurance (which will include 150 active employees as well as Long Term Disability (“LTD”) Beneficiaries who will have vested by December 31, 2010);
- LTD Beneficiaries for both LTD Income benefits and LTD Life insurance benefits;
- LTD Beneficiaries participating under Optional Life insurance for Optional Life insurance benefits
- Survivor Transition Beneficiaries who are currently receiving Survivor Transition benefits; and
- Survivor Income Beneficiaries who are currently receiving Survivor Income benefits
April 6, 2011 – Nortel Announces Stalking Horse Bid by Google to Purchase Patent Assets
Nortel has entered into a stalking horse asset sale agreement with Google Inc. for the sale of all of Nortel’s remaining patents and patent applications for a cash purchase price of US$900 million. Nortel will file a motion for the approval of the bidding procedures by the Ontario Superior Court of Justice. The motion will seek the establishment an auction that allows other qualified bidders to submit higher or otherwise better offers. Following completion of the bidding process, final approval of the U.S. and Canadian courts will be required.
Claims Process Is a Work In Progress
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. We are working with Nortel and the Monitor to create a streamlined process for Continuing Employees’ claims. We expect to be able to provide specifics within the next two months.
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 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:
- pension loss
- future TRA
- retiree benefits
- patent awards
- losses resulting from reductions in salary and benefits with a purchaser of Nortel assets during the period of reasonable notice following the termination of your employment with Nortel
- statutory termination and severance pay (under applicable Employment Standards legislation) for employees who declined an offer of employment with a purchaser of Nortel assets
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 claims. This will include:
- the basic information we will need to determine the reasonable notice period for the termination of your employment with Nortel (date of birth, age, length of service, base salary, other elements of your compensation)
- your most recent Nortel position and a brief description of your duties
- details of your Pension Plan membership
- your most recent Pension Statement
- any documents related to any supplementary pension plan entitlements
- identification (within the limits of the law) of patents for which you should have received an award
- any other information and associated documents concerning any other entitlements from Nortel that you believe may be owing to you
- a summary of the outstanding entitlements you believe are owed
- job offer (and acceptance) from a purchaser of one of Nortel’s business divisions
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.
IMPORTANT Reminder: 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 LLP 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 email@example.com
Employees should also ensure that their contact information is updated in both Nortel’s and Morneau Sobeco’s records. Morneau Sobeco can be contacted at www.pensionwindups.morneausobeco.com or firstname.lastname@example.org.
Negotiated Plan (phone): 1-877-392-2073
Managerial Plan (phone): 1-877-392-2074
March 8, 2011 – Stay of Proceedings Extended to June 30, 2011
On February 25, 2011, the Commercial Court issued an Order extending the stay of proceedings until June 30, 2011. The Court also ordered that the period for receipt of employee hardship applications pursuant to the Employee Hardship Process be extended to June 30, 2011. The Monitor has provided in its 59th Report a status update on the proceedings (the report can be found by clicking here)
Unfortunately, we are still not in a position to advise with certainty what the employee 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. Discussions concerning the claims process are ongoing.