To;        Former Employees of Nortel Networks UK Ltd. and other Nortel

             Subsidiaries in Europe.

 

 

From;   Nigel Rees, David Ball and Ken Edwards

 

 

Subject: Nortel in Administration – Pension Entitlements

 

 

Dear Ladies and Gentlemen,

 

You will all be aware of Nortel’s Chapter 11 Filing in the USA – and similar filings globally, including the appointment of Ernst and Young as Administrators for Nortel Networks UK Ltd (NNUK) and the majority of Nortel entities in Europe.

 

It is possible that Nortel’s decision to File for Chapter 11 in the USA and Administration globally was driven primarily by the desire to avoid Pension and Severance Liabilities. It would appear that the NNUK Pension Plan Deficit / Liability, which Ernst and Young estimate at £1.5 Bn, is Nortel’s most significant liability globally.

 

Ernst and Young are believed to have approached the Pension Protection Fund (PPF), but no decision has yet been taken as to whether the NNUK Pension Plan will be accepted into the PPF.

 

Ernst and Young have called a Creditors Meeting for 11th March 2009. Nigel Rees has been invited. The Trustees of the NNUK Pension Plan do not seem to have  communicated directly with Members their objectives as the likely principal creditor and one who may have the greatest influence at the Creditors meeting.

 

US and Canadian ex Employees / Pension Beneficiaries have ‘organised’ to secure Legal Advice and limited Representation. This has not yet happened in the UK / Europe.

 

We (Nigel Rees, David Ball, Ken Edwards) propose the Engagement of Pitmans Solicitors to:

 

1)     To advise all pension groups of their status under Administration so that each can judge their best response. At the moment we are all working on assumptions and speculation.

2)     Attend the Creditors Meeting on our behalf

3)     Represent us to the Trustees and Ernst and Young

4)     Present at a Meeting or Conference Call:

-          Rights and probable outcome if NNUKPP accepted into PPF

-          Rights and probable outcome if NNUKPP NOT accepted into PPF

5)     Advice on / Representation for ‘next step’ (if any).

 

 

Pitmans is a reputable firm of solicitors, with experience in representing members’ claims in these circumstances. If you would like to know more about them their website is  www.pitmans.com .

 

 

We recognise that people’s interests may differ dependent upon age, service, currently drawing pension, etc.  Pitman’s will highlight implications under various circumstances – and we ALL need advice/ information. Further, it appears that NNUK Ltd had NO Secured Creditors – and does hold cash. Therefore, if NNUK PP is not accepted into PPF, the consequences for members will be serious and we will need representation.

 

If you wish to participate, please:

 

a)     Inform Nigel Rees by Email at nlr784@yahoo.co.uk

b)     Send a cheque for £100, payable to ‘Pitmans Client A/C’ to:

 

           Mr Nigel Rees

           ‘The Gables’,

           Maidenhatch,

           Pangbourne,

           Berks

           RG8 8HP

 

     Including your full name, address and a brief summary of your Nortel Service and Pension status.

 

Your contribution will be used to meet Legal costs, plus modest administrative expenses associated with a proposed ‘Action Group Steering Committee’ which will be established quickly to include the undersigned, if there is sufficient member interest. If contributions exceed total Legal and Administration costs, the balance will be returned to you ‘pro-rata’.

 

 

Yours faithfully,

 

Nigel Rees

David Ball

Ken Edwards