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:

1. Threat from Vulture Bondholders - Discussion Points

2. 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.

3. Copy of advertisement in Hill Times on April 30 and May 7 for all parliamentarians

4. Copy of advertisement for La Presse

5. email and postal address for Minister of Industry, Christian Paradis

 Urgent call for action

This 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 Canadian estate.

With 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 their claims.

In 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.

Currently, 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.

We do 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.

Parliament needs to act promptly to make it clear that it stands with us and will not tolerate this situation.

Simple 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 others.

The 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.

We 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 Nortel's stakeholders.

We 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:

Remove the possibility for Vulture Bondholders to claim interest

on the backs of former employees!

We 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".

We 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.

We've attached reference material to be used and personalised to your situation when you talk or write to your MP and the Minister.

Don Sproule

President, NRPC