Two groups of employees in Ontario will be participating in insolvency proceedings next month in Ontario after hiring Nelligan O’Brien Payne to represent them.
The law firm will argue on April 20 and 21 that employees laid off before the company filed for bankruptcy protection on Jan 14. should have a claim as secured creditors.
“Nortel hasn’t tended to be an employer that in the past was unreasonable,” said Steve Levitt, an associate with the law firm to the Ottawa Business Journal. “But obviously the (creditors’ protection) filing changes things because all claims stated have to be dealt with in that process. It’s a bit of a different landscape.”
I think Koskie Minsky was representing Nortel Pensioners. Is Nelligan et al representing only recently laid off people?
cwlh
I attended the NOBP meeting last night (11th March) and took some notes for friends unable to attend. Here're those notes. I think one of my points answers felixmk's question about the relationship between NOBP and KM.
1. The vultures had gathered outside the meeting room. They were offering incredible business opportunities for people wanting to make lots of money working (very little) from home. Possibly more surprising was a law firm, Juroviesky and Ricci, touting for business. They believe that both of the law firms currently involved are “friendly to Nortel” and not fully representing ex-employees' interests. They are willing to work on a contingency basis: they take no money up-front and are paid from the monies recovered. They're holding an online seminar at 15:00 EDT on 16th March but, according to their handout, it's only accessible by people running a Mac or Microsoft's Windows Operating System—clearly they don't want Linux-based clients, presumably because they're more trouble than they're worth.
2. There was nothing really new presented at the meeting except NOBP's intention to seek formal representation before the court in the hearing to be held on 20th/21st April. If they get this then Nortel will be required to fund some or all of their work.
3. The claims process is unlikely to open before this summer (or autumn).
4. A person's entitlement on employment termination, which can be claimed, includes a period of “reasonable notice” based on age, level of seniority and amount of service. The claim can include not only the salary that would have been received during the termination notice period but also any pension growth. If one takes other employment (including income from self-employment) then this is deducted from the amount that can be claimed. It is, however, necessary to be able to demonstrate that one has been actively “seeking” work.
5. There is strong anecdotal evidence that Mercer is dragging its feet responding to requests for pension estimates and pension applications. NOBP has just started looking into this.
6. There is no need to wait for Nortel to provide a “record of employment” before applying for Unemployment Benefit but again it is important to keep a record of job application,s interviews, etc. to demonstrate that one is actively looking for work.
7. There seems to be some tension between the two law companies currently involved (see above for the third). Nortel is apparently happy with the Toronto-based Koskie Minsky and is working with them. NOBP has tried to agree with KM a division whereby NOBP represents people not drawing a Nortel pension on 14th January whereas KM represents such pensioners. To date KM has not been amenable to this division and wants to do all of the work. Of course, there is some conflict between these two groups of ex-employees (newly laid off people want to take lump sums out of the pension plan ASAP, existing pensioners want to preserve the fund). Apparently about 1300 ex-employees have paid retainers to KM and about 400 to NOBP. NOBP was pushing for more people to sign up with them.
8. In general this was a much more dispirited NOBP presentation than the last one I attended. A comment was dropped at one point that NOBP has already spent the money it has collected (presumably about 400 x $200 = $80,000) and really needs to get official recognition at the hearing on 20th/21st April so that funding can be sucked out of Nortel.
less
Another three of my ex-comrades bought the farm, i just heard. Hey, farms are green. Nortel is green.
One_Tim
What about United States employees? I can't wait to join a class action suite in the US.
dianeurquhart
Nortel CEO Mike Zafirovski and Director John Manley have written e-mails expressing regret that Nortel is not paying severances, and that this outcome is the recommendation of Nortel's Wall Street financial advisor and its large creditors. Fortunately, the Canadian Companies' Creditors Arrangement Act (“CCAA”) contains provisions that prevent the large creditors from running roughshod over the termination pay and severance claims of terminated employees.
Jurovieksy and Ricci LLP has a plan to use the CCAA provisions to gain leverage for the Nortel terminated employees and to achieve for them more than the pro- rata share of the value taken by the unsecured creditors, even achieving payment in full. It would be unfortunate if the Nortel terminated employees were to suffer due to any lack of understanding of the legal process available to them.
Juroviesky and Ricci will be providing a free information session for all severed employees
The JRLLP Plan for Nortel Terminated Employees to Gain Leverage in the CCAA Proceedings
Nortel CEO Mike Zafirovski and Director John Manley have written e-mails expressing regret that Nortel is not paying severances, and that this outcome is the recommendation of Nortel's Wall Street financial advisor and its large creditors. Fortunately, the Canadian Companies' Creditors Arrangement Act (“CCAA”) contains provisions that prevent the large creditors from running roughshod over the termination pay and severance claims of terminated employees.
Jurovieksy and Ricci LLP has a plan to use the CCAA provisions to gain leverage for the Nortel terminated employees and to achieve for them more than the pro- rata share of the value taken by the unsecured creditors, even achieving payment in full. It would be unfortunate if the Nortel terminated employees were to suffer due to any lack of understanding of the legal process available to them.
Juroviesky and Ricci will be providing a free information session for all severed employees
The JRLLP Plan for Nortel Terminated Employees to Gain Leverage in the CCAA Proceedings
Employees Going to Court
Two groups of employees in Ontario will be participating in insolvency proceedings next month in Ontario after hiring Nelligan O’Brien Payne to represent them.
The law firm will argue on April 20 and 21 that employees laid off before the company filed for bankruptcy protection on Jan 14. should have a claim as secured creditors.
“Nortel hasn’t tended to be an employer that in the past was unreasonable,” said Steve Levitt, an associate with the law firm to the Ottawa Business Journal. “But obviously the (creditors’ protection) filing changes things because all claims stated have to be dealt with in that process. It’s a bit of a different landscape.”
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