Nortel pension campaign knocked back by Canadian ruling

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Nortel pension campaign knocked back by Canadian ruling

Alex Scroxton

The Pensions Regulator's quest to make Nortel cover a multi-billion pound deficit in its UK pension scheme has received a setback following a Supreme Court verdict in Canada.

The court threw out a pending appeal on behalf of the Pensions Regulator, which emerged victorious last month from a High Court hearing that said the Regulator could pursue Nortel for £2.1bn.

The judge ruled that in spite of the precedent set in UK law, Nortel's insolvency agreement fell under Canadian jurisdiction and the Regulator's claim did not apply.

Nortel had argued that the attempt to get the money back was in breach of the terms of the creditor agreement that it filed in Canada when it initially went to the wall.

December's ruling by Justice Briggs was reached with some hesitance, with the judge describing the law surrounding the implementation of a Financial Services Directive not "fit for purpose".


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