REPRESENTATIVES for disabled ex-Nortel Networks employees have filed a complaint with Canadian and American bankruptcy watchdogs over professional fees paid by the former technology giant's estate.
The complainants have sent letters to the Office of the Superintendent of Bankruptcy Canada and to U.S. Trustee Roberta Deangelis asking for an investigation into the expenses, which they consider "excessive."
They say the now-defunct company's court-appointed monitor, Ernst & Young, failed to rein in the ballooning payments that have "materially reduced" Nortel's assets and the future distribution of cash to its creditors.
More than 100 parties including ex-workers, bondholders, trade creditors and governments are involved in a complex legal battle over the former equipment maker's $9 billion in residual assets.
Efforts to divide up Nortel's creditor claims abruptly ended Thursday when the Ontario judge leading the proceedings concluded there was no sign of a resolution in sight.
-- The Canadian Press