A fight is brewing in U.S. court that threatens to derail a settlement deal struck last month to conclude a seven-year battle over divvying up Nortel Networks Ltd.’s remaining $7.3-billion (U.S.) in assets, the Globe and Mail reported today. The Pension Benefit Guaranty Corp. (PBGC) has objected to the settlement plan, saying it may not receive enough to cover its $708-million claim, which represents the shortfall in Nortel’s U.S. pension plan after the company filed for chapter 11 bankruptcy protection in 2009. Nortel’s U.S. division has 22,000 pension plan members. PBGC said in a court filing it will “defend its claims aggressively” to ensure it receives the highest possible payout, and warns the settlement will not achieve the desired resolution of the case but will instead “needlessly instigate a lengthy and bitter dispute.”
