Lehman, Nortel Forced To Cover $3.6B In Pension Debt

Law360, New York (December 10, 2010, 5:05 PM EST) -- Lehman Brothers Holdings Inc. and Nortel Networks Inc. have failed to escape a U.K. regulator's order requiring the bankrupt companies to funnel about £2.25 billion ($3.6 billion) into their pension funds.

In an order Friday, the High Court of Justice in London ruled that the companies must cover the costs of a financial support direction issued by the U.K. Pensions Regulator before making distributions to any unsecured creditors.

In November, the Pensions Regulator’s Determinations Panel determined that the Nortel Networks UK Pension Plan and Lehman Brothers...
To view the full article, register now.