January 31, 2012
We are pleased to report that on March 2 the Monitor will be seeking Court approval for a proposed HWT distribution to the LTDs Beneficiaries and Survivors.
Several weeks ago, the court-appointed Representatives through legal counsel asked the Monitor to consider paying a further HWT distribution before all outstanding financial and accounting matters are finalized. The Monitor has now concluded that it is reasonable to pay such a distribution to the LTD Beneficiaries on account of their income and life benefits (other than pensioner life) and to the Survivors on account of their income benefits.
The Monitor is proposing to distribute 10% of the Income Benefits and LTD Life and Optional Life Benefits. The proposed distribution would bring the total of all distributions on these benefits to 35%, which exceeds the original illustration of 33.8. This further 10% distribution is anticipated to be approximately the final distribution for these benefits, but one that will be subject to adjustment once the outstanding financial and accounting matters are finalized. The adjustment could be in the form of either a further distribution from the HWT on these benefits or, if necessary, a deduction from future distributions on pensioner life (if you are entitled to pensioner life) or, if insufficient, from future recoveries against your Compensation Claims in the Nortel estate, whenever these occur.
There will not be a distribution on account of pensioner life or to pensioners at this time.
The proposed distribution is subject to Court approval, which will be sought on March 2, 2012. If the distribution is approved by the Court on March 2, it is expected the distribution will be paid sometime in March. Information about the specific date of the proposed payment is not yet available. If you would like to obtain information about how much the proposed payment to you will be, please refer to the Beneficiary Estimated Allocation Statement (‘BEAS’) that you received in the past. If you are an LTD Beneficiary, the proposed distribution will be 10% of your LTD Income, LTD Life and Optional Life Benefits. If you are a Survivor, the proposed distribution will be 10% of your Income Benefit. As was the case in the past, distributions in respect of LTD Income Benefits are not subject to tax. However, taxes will be withheld from distributions made on account of Survivor income benefits, LTD Life Benefits and LTD Optional Life Benefits.