# SCC agrees to hear arguments on bankrupt company pensions



## carverman (Nov 8, 2010)

Just saw on the CBC news channel that the SCC (Supreme Court of Canada) agreed to hear arguments on why pensioners of a bankrupt company should have 
preferential treatment in the matter of asset disposal
and proceed distribution of a bankrupt employer, in regards to the employers pension plan. 

http://www.winnipegfreepress.com/br...h-changed-rules-for-pensioners-134850883.html

This is a glimmer of hope for us Nortel pensioners, although the SCC hearings make take several months to arrive at a decision that will influence lower courts and I'm still not sure if the decision (if favourable to pensioners) will be retroactive to Nortel's bankruptcy on January 14, 2009.


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## fraser (May 15, 2010)

Indalex is a unique case. 

The decison may or may not have any impact on the Nortel situations.


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## sags (May 15, 2010)

I think it would be difficult to change the order of creditors retroactively, as the assets would already have been distributed.

As a good faith gesture, the government could step up to the plate and make up the difference for any pensioners who suffered losses due to their ranking in the credit pecking order.

We seem to have money for a lot of other things.


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## carverman (Nov 8, 2010)

fraser said:


> Indalex is a unique case.
> 
> The decison may or may not have any impact on the Nortel situations.


Yes, it's too bad that the Harper gov't didn't step up to the plate when there was a window to do so. Although there was a private member's bill that (apparently got past
1st reading) it got squashed in the senate..because their decision... (and I'm sure it was propped up by their consultants)..would be that such a decision would be "bad for business in Canada"..in regards to investor's interests. 

The Indalex case decision was done through an Ontario Court of Appeal ..and finally now after 2 years of dragging it's feet, the SCC is willing to look at it. But as cases go, even if the decision is in favour of pensioners, it probably will not be retroactive, to companies where the assets are already, or in the process of being distributed now, like Nortel's. 


http://www.theglobeandmail.com/repo...has-far-reaching-implications/article1975970/


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## carverman (Nov 8, 2010)

sags said:


> I think it would be difficult to change the order of creditors retroactively, as the assets would already have been distributed.


In Nortel's case (CCAA filed bankruptcy) the assets have been sold and held in escrow, pending a what happens in Britain, where pension laws are more in favour of pensioners rights. 

In the US, where Nortel had two major large R&D labs (Raleigh NC and Richardson Texas) and some other
small regional offices employing thousands..the US gov't is guaranteeing the pensions, even it (US Gov't) is now approaching 15 trillion of national debt.

So at least in Britain and the US, where Nortel conducted business over 25 years, pensioners are not left high and dry by their gov'ts . 



> As a good faith gesture, the government could step up to the plate and make up the difference for any pensioners who suffered losses due to their ranking in the credit pecking order.
> We seem to have money for a lot of other things.


Harper doesn't really care about the rank and file of Canada. He has other agendas and pursuing those. 
It is a sad era for Canada and it will get a lot worse. 
We all know by now, what Mulroney was up to..
lining his own pockets, while claiming to be there for the rest of Canada!


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