Nortel Networks Corporation – 83
December 20, 2010
In part as a result of the application for leave to appeal the Court’s recent HWT decision, there can be no full and final distribution of the funds in Nortel’s Health and Welfare Trust before the end of 2010, as was originally hoped. In order to provide interim financial relief for those individuals who are about to experience a cessation of monthly income benefits, the Disabled Employees’ Representative, the Former Employees’ Representatives and the CAW asked the Monitor to bring a motion for an interim distribution to HWT income beneficiaries who are currently in receipt of income benefits.
The Monitor’s motion for an interim distribution was approved by the Court on December 15, 2010. To view a copy of the Order, please click here. To view a copy of the Endorsement, please click here. A lump sum distribution of 10% of the present value of eligible beneficiaries’ total income benefit claim to a maximum of 3 months of benefits will be made to income beneficiaries of Nortel’s Health and Welfare Trust (HWT). The Monitor is of the opinion that this level of interim distribution is prudent, reasonable and will not prejudice other HWT beneficiaries or benefits. It is expected that income beneficiaries will receive the interim cash distribution from funds held in the HWT on or around January 31, 2011. The interim distribution will be treated as an advance on income beneficiaries’ ultimate claim to be paid from the funds held in the HWT. Please contact the Monitor if you have any questions.