May 28, 2009
On May 28, 2009, Nortel brought a motion to seek advice and direction from the Court with regard to pension transfers. Nortel sought to reduce the transfer ratio on commuted value transfers out of the Plans from 85/86% to 69%. KM appeared on behalf of all former employees at this motion. The Former Employees supported the reduction to 69% as a prudent and preservative move, but were concerned about election forms sent to those who had been recently terminated. Prior to the motion, KM worked with Nortel to reach a solution for “Transition Members” who had already been provided with a package setting out their termination options, including a commuted value transfer ratio of 85/86%. The Financial Services Commission of Ontario (“FSCO”) opposed the solution presented by KM and Nortel. No other creditors opposed the motion.