Nortel's Pension Fallout

British pension protection fund saddled with deficit

January 19, 2009

1 Min Read
Nortel's Pension Fallout

The knock-on impact of Nortel Networks Ltd. 's decision to restructure isn't just hitting its suppliers, partners, customers, and staff. (See Nortel Appoints EMEA Administrator, Nortel for the Long Jump?, Spooky Nortel Anagram, Nortel Files for Bankruptcy Protection, and Should Nortel Be Sold for Parts?.)

One British newspaper reports that Nortel's U.K. pension scheme is to be placed into the government-backed Pension Protection Fund, which deals with the retirement funds of failed companies.

According to the story in The Times, Nortel's U.K. pension fund has a deficit of about £1 billion (US$1.45 billion).

So now the list of worried people extends to some of those that already jumped ship.

— Ray Le Maistre, International News Editor, Light Reading

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