TORONTO, April 30, 2012 /CNW/ - CIBC Mellon has been selected to provide asset servicing solutions for the Nortel Networks Canadian defined benefit pension plans. CIBC Mellon will deliver custody services, securities lending, pension accounting, pension benefits payment and reporting, and access to leading-edge information-delivery technology.
Morneau Shepell Ltd. (Morneau Shepell) was appointed by the Superintendent of Financial Services (Ontario) on Oct. 1, 2010 as the Administrator overseeing $2.8 billion of assets on behalf of Nortel pensioners for the purposes of winding up the Nortel Networks Canadian pension plans. CIBC Mellon was selected as custodian for the Nortel defined benefit plans' assets by Morneau Shepell in their capacity as the plans' Administrator.
"We identified CIBC Mellon's suite of asset servicing solutions as the best choice for Nortel's 20,000+ members based on the projected additional revenue from CIBC Mellon's strong securities lending program, the flexibility of their benefit payments team and the company's reputation for client service," said Robert Chepelsky, principal, asset consulting, Morneau Shepell.
"We look forward to providing Nortel members and Morneau Shepell with great service, efficiency and performance. CIBC Mellon's reputation as a trusted provider is continually built on the strong results we deliver on a daily basis for pensioners across Canada and their plan sponsors," said Tom Monahan, president and chief executive officer, CIBC Mellon.
About Morneau Shepell
Morneau Shepell is the largest Canadian-based firm offering industry-leading benefits and pension consulting, outsourcing, as well as health and productivity solutions. The company works with clients to develop end-to-end insights and solutions that integrate with their business strategies to achieve results. Through Benefits and Health Solutions Consulting, Pension Consulting, Health Management, Administration Solutions and Employee Assistance Program, Morneau Shepell helps clients reduce costs, increase employee productivity, and improve their competitive positions by supporting their employees' financial security, health and wellbeing. Established in 1966, Morneau Shepell serves over 8,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 2,500 employees in offices across North America, we provide services to organizations across Canada, in the United States and around the globe.
Morneau Shepell's parent company, Morneau Shepell Inc. is a publicly traded company on the Toronto Stock Exchange (TSX). For more information, visit www.morneaushepell.com
On January 14, 2009, after extensive consideration of all other alternatives, and after thorough consultation with its advisors, Nortel initiated creditor protection proceedings in multiple jurisdictions under the respective restructuring regimes of Canada under the Companies' Creditors Arrangement Act, the United States under Chapter 11 of the U.S. Bankruptcy Code, the United Kingdom under the Insolvency Act 1986, and subsequently in other jurisdictions.
Since determining in June 2009 that selling its businesses was the best path forward, Nortel has sold all of its businesses as well as its patents and patent applications generating approximately US$7.7 billion in net proceeds for the benefit of its creditors, and preserving 16,000 jobs for employees with the purchasers of the businesses and assets. Nortel remains focused on maximizing value for its stakeholders, including the sale of its remaining assets, resolution of claims, the wind-down of its global operations and entities, resolution of allocation matters with respect to the sale proceeds, and other significant restructuring activities toward the conclusion of the creditor protection proceedings.
About CIBC Mellon
CIBC Mellon provides asset servicing solutions for institutions and corporations, including custody, multicurrency accounting, fund administration, unitholder recordkeeping, pension services and securities lending. We have over 1,100 people dedicated to supporting more than 1,200 client relationships with Canadian banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and foreign financial institutions whose clients invest in Canada. As of March 31, 2012, CIBC Mellon held more than CAD$1.1 trillion of assets under administration on behalf of our clients. CIBC Mellon is headquartered in Toronto, with offices across Canada in Vancouver, Calgary, London, Montreal and Halifax. Founded in 1996, CIBC Mellon is 50-50 jointly owned by Canadian Imperial Bank of Commerce (CIBC) and The Bank of New York Mellon Corporation (BNY Mellon), the world's largest custodian. CIBC Mellon is part of the BNY Mellon network, which as of March 31, 2012 had USD$26.6 trillion in assets under custody and administration, USD$1.3 trillion in assets under management and global payments processed averaging $1.4 trillion per day.
For more information, visit www.cibcmellon.com or follow us on Twitter @CIBCMellon.
For further information:
Brent Merriman, corporate affairs, CIBC Mellon, 416-643-5000, [email protected]
Lisa McLachlan, Morneau Shepell, 416-816-5763, [email protected]
Investors, analysts, and the press may contact Nortel at [email protected] or by calling 905-863-6049.