UK regulator files $3.3 billion Nortel claim: report

Sat Feb 20, 2010 10:15am EST
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TORONTO (Reuters) - A British pension-fund regulator has filed a claim for 2.1 billion pounds ($3.3 billion) against failed telecom equipment giant Nortel Networks Corp, Canada's Globe and Mail newspaper reported on Saturday.

The report said the move sets the stage for a potential international tug of war between the fallen company's far-flung creditors.

The article said a filing to an Ontario court showed the UK Pensions Regulator set a March 1 deadline for action that could lead to an order against Nortel's assets.

Officials with Nortel and Britain's Pension Regulator could not immediately be reached for comment on the report.

Once North America's biggest telecommunications equipment maker, Nortel filed for bankruptcy protection in January 2009 and is auctioning off its assets in an effort to pay back debtholders, rather than restructuring the business.

(Reporting by Jeffrey Hodgson; editing by Todd Eastham)

<p>A sign is pictured outside Nortel's Carling Campus in Ottawa August 10, 2009. REUTERS/Blair Gable</p>