The UK pension fund of Nortel Networks is bust, threatening the
pensions of 43,000 current and former employees of the Canadian
company.
Nortel was forced into chapter 11 bankruptcy last week, and The
Times
reports that the UK pension scheme of the firm has a deficit of
£1bn.
The Nortel scheme may now have to go cap in hand to the UK
Pension Protection Fund (PPF) as a result.
The PPF may be able to protect the pensions of current and
former Nortel staff, but its own funds have already been stretched
as a result of other failed companies, points out the paper.
