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Koskie Minsky LLP

Koskie Minsky LLP

Nortel Networks Corporation


On January 14, 2009, Nortel Networks Corporation and several of its affiliated companies ("Nortel") were granted protection from their creditors under the Companies' Creditors Arrangement Act (the "CCAA") pursuant to an Order of the Honourable Justice Morawetz. Ernst & Young was appointed as Monitor of Nortel's CCAA proceedings.

On May 27, 2009, the Ontario Superior Court of Justice (Commercial List) granted a Representation Order appointing Koskie Minsky LLP as Representative Counsel for all former employees of Nortel. In accordance with the Representation Order, KM will act as Representative Counsel to all former employees of Nortel, unless specifically excepted or unless the individual chooses otherwise.

On July 30, 2009, Koskie Minsky was appointed as Representative Counsel for employees of Nortel who are in receipt of long-term disability benefits, subject to certain exceptions.

On March 31, 2010, the Ontario Superior Court of Justice approved a Settlement Agreement which secures the continuation of medical and life insurance benefits, and long-term disability and survivor income benefits, through 2010. As part of the negotiated settlement, eligible terminated employees will also get a lump sum payment in advance of the claims process.

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Latest Developments

May 12, 2015

We are very pleased to report that on May 12, 2015, the Ontario Superior Court of Justice (Commercial List) and the United States Bankruptcy Court released consistent decisions requiring the allocation of assets from the sale of Nortel’s businesses and intellectual property be based on a pro rata approach. The “lockbox” of funds from the patent and business sales is to be allocated proportionately based on the aggregated claims in each of the three jurisdictions. All creditors, including Canadian pensioners and disabled employees, are to receive a fair and equitable payment of their claims. The decisions take an unprecedented approach, and are a major breakthrough in the cross-border litigation. 

The Canadian Creditor’s Committee (CCC), representing employee and pension interests, advocated  pro rata as the most equitable allocation method, and it best reflected the reality of the way that Nortel functioned globally as a highly integrated organization.

To view a copy of the decision of Justice Newbould of the Ontario Superior Court of Justice (Commercial List) please click here

To view a copy of the opinion of Judge Gross of the U.S. Bankruptcy Court please click here. To view a copy of Judge Gross’ Allocation Order please click here.

For more information regarding the allocation dispute, including pleadings and summaries of the proceedings, please visit our Nortel Allocation Litigation tab by clicking here

April 7, 2015

A Disabled Progress Report was mailed out on April 7, 2015. To view a copy, please click here.

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