Trustee Asks High Court To Let Nortel Pension Fight Proceed

Law360, New York (April 30, 2012, 1:09 PM EDT) -- Bankrupt Nortel Networks Inc.'s British pension plan trustee asked the U.S. Supreme Court on April 20 for permission to challenge a $3.1 billion shortfall in Nortel's reorganization plan in a British regulatory proceeding, arguing that an automatic stay shouldn't apply.

The Third Circuit was wrong to rule that the British regulatory proceeding couldn't go forward because of the automatic stay imposed by the U.S. bankruptcy court as part of Canada-based Nortel's reorganization, the trustee said.

In the British proceeding, the U.K. Pensions Regulator is trying to...
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