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.
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