More waiting could be in store for Nortel pensioners
Summary
A move by the Financial Services Commission of Ontario to reclaim $200 million from monies allocated to pensioners in the Nortel Networks Corp. bankruptcy could leave their recovery — up in the air since 2009 — in limbo for another four years. Morneau Shepell’s error, Zigler states, was in claiming a refund in respect of indexation benefits that PGBF did not guarantee. Zigler has filed a request for a hearing before the Financial Services Tribunal (FST), which will decide whether to uphold Wong’s decision. The refund is payable, according to the PBGF, because the pensioners ultimately received more than the Fund had estimated would flow from the insolvency proceeds. The $850 million that flowed to his clients under the insolvency, Zigler argues, includes the value of the indexation benefits under the Nortel pensions.