Executives of Defunct Nortel Still Receive Bonuses 8 Years after Filing for Bankruptcy

by San Antonio Attorney

Unpaid former employees of Nortel are upset that the company executives are still getting retention incentives though it has been 8 years since the bankruptcy proceedings began.

Requests for next year’s retention incentive plan are reportedly included in a monthly report to the court in Canada that oversees Nortel’s bankruptcy.

According to reports, a total of $190 million in bonuses for special retention after bankruptcy have already been given to the executives.

In January 2009, Nortel filed the biggest bankruptcy in Canada causing major losses to pensioners, former workers and shareholders.

Almost 8 years have passed since Nortel generated billions of dollars from selling its assets. Technically, the company is still operating up to now.

The pensioner’s lawyer said that the company continues to exist performing administrative duties and providing information to the court. The process is protracted because Nortel was a large company that employed thousands of people.

Chris Buchanan, an employee from 1981 to 2009, said he’s becoming inpatient over the expenses of the process.

The company owes millions of dollars to its former employees as well as creditors, but it is unsure when Nortel’s estate will be closed for good.

Meetings have recently begun to tackle how Nortel pensioners will be notified about the options available to them before the fund is assumed by a different management in 2017. The pensioners are given the option to choose between a lump sum payment and annuities.

David Villeneuve, a Nortel employee for 35 years, said a lot of participants at the meeting just want the company to finally shutdown. About 20,000 former employers and pensioners have been asked to come to these meetings held all over Canada.

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