PBGC Takes Over Nortel's Underfunded Pension Plan

Law360, New York (July 17, 2009, 6:46 PM EDT) -- The Pension Benefit Guaranty Corp. announced Friday that it would take over an underfunded pension plan covering more than 23,000 employees and retirees of Nortel Networks Inc., the U.S. subsidiary of bankrupt Canadian telecommunications equipment maker Nortel Networks Corp., as the company prepares to liquidate in a series of asset sales.

Because none of the impending transactions, including a proposed $650 million sale of the company's wireless infrastructure business to Nokia Siemens Networks BV, include the Nortel Networks Retirement Plan, the PBGC has agreed to assume...
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