Frequently Asked Questions Regarding the Recent Schedule Amendments for Certain Former Employees’ Pre-Petition Severance Claims

As of October 27, 2011

  1. What employee claims are being addressed by the US debtors in their second amended schedules?
    Currently, the US debtors are addressing only (1) certain claims for severance owed to employees of NNI and Nortel Altsystems whose employment was terminated prior to January 14, 2009 (the date on which those companies filed for Chapter 11 bankruptcy protection) and (2) certain claims for severance owed to employees of Nortel Networks (CALA) Inc. whose employment was terminated prior to July 14, 2009 (the date on which Nortel Networks (CALA) Inc. filed for Chapter 11 bankruptcy protection).
  2. What is being done with the severance claims?
    The US debtors have made a final determination of the value of the severance claims owed to certain employees whose employment was terminated prior to the date their employer filed for bankruptcy, and are amending the schedules that were filed with the US bankruptcy court to reflect that determination. The schedules are the US debtors’ statement of the amount they believe is owed to a creditor of the estate. The US debtors may in the future file additional amendments to the schedules to amend the claim amounts or priority of the claims of other employees for severance or other benefits.
  3. My claim has been deleted from one of the schedules. Why was this deletion made?
    The US debtors’ Schedule E lists the claims the US debtors believe are entitled to statutory priority, while Schedule F lists the claims the US debtors believe are general unsecured claims. Upon further examination of the schedules that were filed in 2009, certain amounts were listed on Schedule E as claims entitled to priority, when under the law those claims are not entitled to any such priority.Alternatively, certain amounts were listed on Schedule F as claims not entitled to priority, when under the law those claims are entitled to priority. Finally, some claims were listed on Schedules E and F when in fact the employee had waived their severance benefits and thus is not entitled to a severance claim against the US debtors. The schedules are therefore being amended to properly reflect the priority the severance claims are entitled to under the law.
  4. My GID was listed on one of the schedule amendments that were recently filed with the court, but I haven’t received any information in the mail. When will my letter arrive?
    If your GID is listed on the schedule amendments, you should expect to receive a personalized letter from the US debtors and Epiq, the US debtors’ bankruptcy administrator, within approximately 5 days of the date the schedule amendment was filed. If you do not receive the letter within that time, please contact Epiq Bankruptcy Solutions, LLC at (646) 282-2400 to verify your correct mailing address. A copy of the notice filed by the US debtors with the schedule amendments is available at http://dm.epiq11.com/nortel. As the notice indicates, if your claim is listed on the amended schedules, a new bar date (deadline) has been set if you wish to file a claim for severance, or amend a claim you previously filed for severance because you disagree with the amount or priority of the claim for severance listed on the amended schedules. The claims deadline is listed on the notice filed with the amended schedules. You do not need to wait to receive a personalized letter to file an amended claim, and you should expect that the claims deadline will apply to you even if you have not received a personalized letter. A copy of the proof of claim form and instructions for filing a claim is available at http://dm.epiq11.com/nortel.
  5. I think I have a claim for severance. Why isn’t my GID listed on any of the schedule amendments being filed with the court?
    The current schedule amendments relate only to certain employees who have claims for severance and whose employment was terminated prior the date on which the employer filed for Chapter 11 bankruptcy protection. For employees of Nortel Networks Inc. and Nortel Altsystems, this date was January 14, 2009. For employees of Nortel Networks (CALA) Inc., this date was July 14, 2009. If your employment was terminated before that time and your GID is not listed on the current amended schedules, your claim still may be revised on an amended schedule to be filed by the US debtors in the future.

    If your employment was terminated after that date, any claim you may have for severance will be addressed at a later date.In addition, if you may be entitled to other types of claims, such as claims under certain pension plans or deferred compensation plans, your claim for severance will be addressed at a later date.

    All employees who have filed a claim against the US debtors, or who were listed on the US debtors’ original schedules filed with the US bankruptcy court in 2009 (available at http://dm.epiq11.com/nortel), will be contacted in due course if the US debtors have questions about or object to their filed claims.
  6. I received a letter about my severance claim, but I think I have a claim that the letter does not address. What should I do?
    The current schedule amendments only address certain severance claims. The general bar date (deadline) for filing pre-bankruptcy claims against the US debtors was set at September 30, 2009 and January 25, 2010 for Nortel Networks (CALA) Inc. If you already filed a proof of claim for another type of benefit other than severance, your claim will be addressed in the process of the bankruptcy administration. If you have questions about whether to file a claim, you should consider whether you need to seek your own legal advice.
  7. What do I need to do if I agree with the amount and priority of the severance listed on the letter?
    If you agree with the amount and priority listed on your personalized letter, you do not need to do anything at this time. You do not need to send in another proof of claim or rescind any previous proof of claim you may have filed at this time, although the US debtors may object to your previously filed proof of claim at a later time.
  8. What do I need to do if I believe the amount or priority of the severance listed on the letter is wrong?
    If you believe the amount or the priority of the severance claim listed in your personalized letter is incorrect and you did not previously file a proof of claim for your severance that states the amount you believe you are owed, you should fill out the proof of claim included in your package, and return the proof of claim to Epiq prior to the date indicated in the letter.If you did previously file a proof of claim for your severance, and you believe that proof of claim reflects the amount and priority of your severance, you do not need to do anything at this time.

    If you previously filed a proof of claim for your severance benefits, but you wish to change that claim, you should fill out the proof of claim included in your package, and return the proof of claim to Epiq prior to the date indicated in the letter.
  9. Do I need an attorney?
    If you agree with the amount or priority of the severance claim listed on your letter, you are not being asked to do anything at this time. If you disagree with the amount or priority of the severance claim, you will need to file a proof of claim if you have not done so already. It is your decision whether you wish to engage an attorney to assist you in that process.
  10. What does it mean to have “priority”?
    The bankruptcy code in the United States includes several categories of claims, some of which are entitled to certain “priority.” Priority determines the order in which claims are paid from the money available for distribution to creditors. Claims granted priority status, in general, are entitled to be paid before money is paid to the company’s general unsecured creditors.
  11. When will I be paid for my severance claim?
    Distributions will be made following confirmation of the US debtors’ plan of reorganization and the conditions are met to authorize the US debtors to make distributions to creditors based on that plan, which will be proposed and approved in due course. At this time, we cannot estimate when payment on claims will be made.
  12. How much will I receive for my claim?
    We cannot currently estimate the amount you will receive in respect of your claim in the bankruptcy. This amount will be determined pursuant to the plan of reorganization in due course.
  13. My employment with the US debtors was terminated on or after the date on which the companies filed for bankruptcy protection. When will my claim for severance be addressed?
    Claims for severance owed to employees who worked for the US debtors after their bankruptcy filings will be addressed in due course later in the case.
  14. I was not owed severance by the US debtors, but I was listed on the schedules filed in May 2009 (or September 2009, with respect to Nortel Networks (CALA) Inc.) for another type of claim. When will my claim be addressed?
    The US debtors will be addressing other employee claims in the coming months. You will receive notice in the mail when your claim is being addressed.
  15. Why are the claims listed on the schedule according to GID number rather than by name?
    Since the schedules are required to be filed with the courts and become public documents, the US debtors wish to protect your privacy by using GID number rather than name.
  16. What if I forgot my GID number?
    If you received a letter regarding your severance claim, your GID number is listed on the letter above your name and mailing address.If you have not received a letter, you may call HR Shared Services at 800-676-4636 to receive your GID number. The call center is open to receive calls Monday through Friday, from 9:00 am to 1:00 pm (ET).
  17. What if the GID number listed on my letter is incorrect?
    If you believe the GID number listed on your letter is incorrect, please contact HR Shared Services at 800-676-4636. The call center is open to receive calls Monday through Friday, from 9:00 am to 1:00 pm (ET).
  18. What if I have moved recently?
    If you have moved since 2009, please contact Epiq to inform them of any changes to your address.

Please check back here for further updates over time.