Nortel Weighs Heavy on PPF
NOON -- Back in January, following Nortel Networks Ltd. 's decision to seek bankruptcy protection and call in the administrators, we reported how the U.K.'s Pension Protection Fund (PPF) was taking the strain of the vendor's U.K. pension fund, which was reported to be about £1 billion (US$1.44 billion) in arrears. (See Nortel's Pension Fallout, Nortel Appoints EMEA Administrator, and Nortel Files for Bankruptcy Protection.)
It seems that estimation was a somewhat optimistic, as Nortel's deficit appears to be closer to £2 billion ($2.87 billion), according to this report in The Guardian.
Now the U.K. government is under pressure to guarantee the PPF, which means the British taxpayer could end up shouldering the financial burden.
What next? Will the U.K. public be asked to fund Mike Z's sharp suit allowance, too?
— Ray Le Maistre, Finance & Fashion Editor, Light Reading