The Canadian Auto Workers union blames Nortel bondholders for failure of negotiations to divvy up the remaining $9 billion in assets of now bankrupt telecom equipment maker
The collapse of mediation efforts to divide Nortel Networks Corp.’s remaining assets was caused by bondholders demanding full value plus interest on their investments in the now bankrupt former telecom giant, according to the Canadian Auto Workers union.
The network equipment provider was worth nearly $300 billion and had more than 90,000 employees worldwide, when it was at the height of its profitability. Up to 2000, Nortel was considered one of Canada’s most successful companies and it shares traded at a peak of $124.50,
CAW also took a stab at Canada’s bankruptcy laws, saying they left many Nortel pensioners at a disadvantage.
“It is inconceivable that junk-bond speculators can reap unconscionable profits from utter misery,” said Jerry Dias, Lawenza’s assistant. “Sadly, our federal government, who could reform the existing laws and regulations, is allowing this to happen because it is ,more interested in protecting financial opportunists that the Canadian workers who built Nortel…”
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