Nortel

Jack Jones looks at the fallout from last week's Supreme Court decision on Nortel

The Supreme Court decision on financial support directions has been welcomed by all sides

The Supreme Court has overturned a ruling that financial support directions (FSD) issued by The Pensions Regulator (TPR) in insolvencies should be treated as an expense of the administration.

Jack Jones looks at the three options that were open to the Supreme Court

Administrators of Nortel and Lehman Brothers have reached the Supreme Court in their attempts to challenge a Financial Support Direction (FSD) issued by The Pensions Regulator against the insolvent companies.

The UK's top judge, Supreme Court president Lord Neuberger of Abbotsbury, will next month decide whether pension schemes should retain "super priority" status in insolvencies.

The Trustee of the Nortel Networks UK Pension Plan and the Pension Protection Fund have been left empty-handed after an international mediation failed to settle the dispute over the assets of collapsed telecoms giant Nortel Networks Corporation.

Representatives from the Nortel Networks UK Pension Plan and the Pension Protection Fund have travelled to Canada in a bid to secure more than $2bn (£1.2bn) from an international mediation.

A claim for more than one billion dollars has been filed in the US courts against Nortel Networks' US affiliates.

The Pensions Regulator has reassured banks and administrators that it will not "frustrate" the rescue culture in the UK in the wake of the Nortel/Lehmans ruling.