Members are asked to go to the Members Only Section / Documents / English Documents / Political Action / Call to Action to members. In addition to that file, there are several other files to assist you in preparing a letter to your Conservative MP (or your closest Conservative MP) and to Industry Minister Christian Paradis. The Nortel bondholders currently have the ability to claim interest on their bonds since Jan. 14, 2009, when Nortel filed for bankruptcy protection. The NRPC is trying to raise the volume on this subject to get the Government to make a statement that under the intent of our legislation one creditor should not benefit to the detriment of another of equal standing in court. Please read those documents and get your letters off as soon as possible. A large volume of letters is necessary to raise the Governments awareness of the inequity of this situation.
Files available on website:
Threat from Vulture Bondholders - Discussion Points
Sample letters that you can reference and edit. Remember there is no postage necessary if you write to them in care of their Parliament Hill address.
Copy of advertisement in Hill Times on April 30 and May 7 for all parliamentarians
Copy of advertisement for La Presse
email and postal address for Minister of Industry, Christian Paradis
call for action
is to request everyone's
active contribution by
writing or talking to your nearest Conservative MP and to the
Minister of Industry, Christian Paradis, to address an issue that may
be created by the Nortel bondholders that could significantly affect
the value of your pension and other claims against the Nortel
the total global assets of Nortel set at $7B, the money is bringing
the scavengers out of the woodwork. One of the most egregious
situations is that of the current holders of Nortel bonds, the
vulture bond funds. Because their bonds
were cross-guaranteed between Canada and the US estates, it is almost
certain that bondholders will try and
assert claims in both estates to receive a combined payout of 100% on
addition, we anticipate that bondholders may allege that the US
estate is solvent e.g. the US estate is entitled to enough of the $7
billion so as it can pay all the claims against it in full. If the
bondholders are successful in this assertion, there is speculation
that they could add a claim for accrued
interest from January 2009 when Nortel declared CCAA protection. This
would have the net effect to increase their claim by
as much as $1.0B which would have a
materially negative impact on all other creditors, including us,
Nortel's former Canadian employees.
because of the added revenue from the sale of patents, our position
has improved somewhat but our recovery from the estate is expected to
still be a small fraction of our claims. If the vulture funds claim
in both Canada and the US and also claim interest, they could recover
as much as 125% of their bond face value. Given that many of the
vulture funds acquired their bonds for cents on the dollar, their
return would be absurd.
not concede any of these claims and intend to fight them vigorously.
It is offensive that these speculators, who moved in after Nortel
declared bankruptcy, should even contemplate trying to unduly profit
at the expense of Nortel's former Canadian employees, the innocent
victims of this insolvency.
needs to act promptly to make it clear
that it stands with us and will not tolerate this situation.
clarifications to the CCAA and BIA acts may be required, to eliminate
any ambiguity in the legislation, in order to rectify this situation
and ensure that speculators do not profit from the misfortunes of
NRPC has vigorously raised this issue with members of the Canadian
Government and made reasoned and principled proposals for remedy. In
particular, the ability for bondholders to claim interest, while
other claimants receive only a fraction of their claim, needs to be
eliminated. Our arguments have
gained traction within senior government circles. However, for
action, our proposals must be brought to cabinet by the Minister of
Industry, Christian Paradis.
need the plight of Nortel's Canadian workers to be the subject of
the Conservative caucus and, through its members, make Minister
Paradis aware of some 20,000 Canadians who have been wronged and are
about to get hurt even more. For
you the pensioners, some of whom have seen a 50% cutback in your
pension and have lost your health and your life benefits; for you the
terminated employees with 0% severance and for you on LTD, cut adrift
with no health insurance and stuck at 36% of your income benefits; it
shouldn't be hard to convey your moral outrage in thinking that
vulture bondholders may move in to try and recover 125% of their
claim. All that is accomplished by such outrageous demands is a
delay in reaching a fair and reasonable settlement for all of
urge you to immediately write, call and/or visit your nearest
Conservative MP and write directly to Minister Paradis
about this injustice. You may wish to deliver your letter personally
and also express your frustration in person to the Member of
Parliament or his/her assistant. Make as much noise as you can about
the need for Government action on the NRPC's proposal to:
the possibility for Vulture
to claim interest
the backs of former employees!
need everyone to initiate this campaign at once
and keep it up until the government announces "The
Government won't allow paid interest when other equally ranked
creditors are taking a reduction".
request that the government proceed with an announcement within the
next three weeks. International mediation to negotiate an agreement
on the distribution of the $7B across the international estates
starts with an introductory session slated for April 24.
attached reference material to be used and personalised to your
situation when you talk or write to your MP and the Minister.