Nortel has declared Chapter 11 bankruptcy and is in the process of selling off their assets to satisfy the creditors and found out the Long Term Disability (LTD) insurance is being administered by Prudential but Nortel is self insured. When they sell off all of their assets, which they will by 1Q2010, and the creditors receive their pennies on the dollar what becomes of the pay that employees on LTD are receiving today? the pay has not been interupted as of this writing.
Is there any protection from the government or states to protect these employees as the pension is protected?
The company is not providing any input on the subject. Do we need to line up an attorney to support any claim we may have in the future?
Worried in New Hampshire