Former Nortel Networks CEO Mike Zafirovski submitted a claim against the insolvent equipment maker for more than $12 million in pension, bonus and severance payments. Zafirovski joins a group of other former Nortel employees who have been fighting for their severance and pension payments in court. The claims will be considered alongside all others in bankruptcy court proceedings, including those of Nortel's suppliers and creditors. Not all claims will be recognized or paid in full.
News that Zafirovski, tasked with saving the troubled firm, had filed for payments did not go over well with former Nortel employees also seeking payments.
"I was amazed and I'm frankly staggered by his effrontery," Tony Marsh, spokesman for a group called Nortel Retirees and former employees Protection Canada, told the Canadian Press.
Zafirovski stepped down from the company in August. He had joined Nortel in 2005 in hopes of turning the company around, but the economic downturn took its toll on the vendor and derailed the plans. Rather than try to restructure, the company has chosen to auction off its core businesses.
In other Nortel news, the company appears to have reached a settlement with the U.S. Internal Revenue Service over a $3 billion tax claim. The two sides have postponed a trial that was set for tomorrow.
Nortel, IRS headed to trial over $3B tax bill
Nortel's Zafirovski departs as company posts $274M loss
Canadian government won't block Ericsson-Nortel deal
Nortel hit with $3B tax claim by IRS