Nortel Networks Corporation – 79

January 27, 2011

Supreme Court of Canada Denies UK Pension Regulator’s Application for Leave to Appeal

The Supreme Court of Canada has dismissed the UK Pension Regulator’s application for leave to appeal. The Ontario Court of Appeal had previously upheld a decision of the Ontario Superior Court of Justice, providing that the results of certain foreign proceedings were unenforceable in Canada. The SCC’s decision means that results reached in UK proceedings involving Nortel’s UK pension plan will not be enforceable in the Canadian court system. Please follow the following link for more information: [link no longer active]

scc.lexum.umontreal.ca/en/news_release/2011/11-01-27.3a/11-01-27.3a.html

Please note that the SCC’s decision does not mean that UK parties are prohibited from asserting a pension claim in Canada. Rather, parties in the UK and other European countries will have an opportunity to file a claim in Canada through the EMEA Claims Procedure Order, which was granted by the Ontario Superior Court of Justice on January 14, 2011. Such claims must be filed with the Monitor by March 18, 2011. Please note that the EMEA Claims Procedure Order does not affect pensioners, former employees or disabled employees, as those claims will be subject to a separate Compensation Claims Procedure, the details of which currently remain subject to discussion.

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