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CIBC Mellon wins Nortel mandate
01 May 2012
CIBC Mellon will deliver custody services, securities lending, pension accounting, pension benefits payment and reporting to the restructuring Canadian fund
CIBC Mellon has been selected to provide asset servicing solutions for the Nortel Networks Canadian defined benefit pension plans.
CIBC Mellon will deliver custody services, securities lending, pension accounting, pension benefits payment and reporting.
Morneau Shepell was appointed by the Superintendent of Financial Services (Ontario) on October 1, 2010 as the administrator overseeing $2.8bn of assets on behalf of Nortel pensioners for the purposes of winding up the Nortel Networks Canadian pension plans. CIBC Mellon was selected as custodian for the Nortel defined benefit plans' assets by Morneau Shepell in their capacity as the plans' administrator.
Morneau Shepell is the largest Canadian-based firm offering benefits and pension consulting, outsourcing, as well as health and productivity solutions.
On January 14, 2009 Nortel initiated creditor protection proceedings in multiple jurisdictions under the respective restructuring regimes of Canada under the Companies' Creditors Arrangement Act, the United States under Chapter 11 of the US Bankruptcy Code, the United Kingdom under the Insolvency Act 1986, and subsequently in other jurisdictions.
Nortel has sold all of its businesses as well as its patents and patent applications generating approximately $7.7bn in net proceeds for the benefit of its creditors, and preserving 16,000 jobs for employees with the purchasers of the businesses and assets. Nortel remains focused on maximizing value for its stakeholders, including the sale of its remaining assets, resolution of claims, the wind-down of its global operations and entities, resolution of allocation matters with respect to the sale proceeds, and other significant restructuring activities toward the conclusion of the creditor protection proceedings.