Ex-Nortel CEO's $12M claim shocks former employees
Former CEO wants $12M
Last Updated: Friday, October 9, 2009 | 4:02 PM ET
CBC News
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Nortel pensioners are shocked that a former CEO is seeking more than $12 million US from the insolvent company, a spokesman for the group said Friday.
Recently departed Mike Zafirovski has filed a motion with a U.S. bankruptcy court for "not less than $12,250,543.48" US from the failed technology firm.
A former Nortel employees says he is shocked by departed CEO Mike Zafirovski's bid for $12 million US and 'staggered by his effrontery.' (Paul Sakuma/CP) "I think it's safe to say that I was shocked," said Tony Marsh, spokesman for a group called Nortel Retirees and former employees Protection Canada. "I was amazed and I'm frankly staggered by his effrontery."
The court is overseeing the sale of assets to pay off creditors like Zafirovski, who is not expected to get his full claim.
Former employees who were laid off will have to fight to get severance payments that had been part of their separation packages. As well, Nortel has several pension plans that don't have enough assets to generate promised retirement benefits.
With files from The Canadian PressShare Tools
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