Stock Symbol: MBT
WINNIPEG, Feb. 11, 2012 /CNW/ - Manitoba Telecom Services Inc. (TSX:
MBT) (the "Company" or "MTS Allstream") today announced that the
Manitoba Court of Appeal has ruled in its favour on a lawsuit regarding
one of MTS's pension plans in Manitoba. The matters that were subject
to this litigation were in respect of events that occurred at the time
of MTS's privatization in 1997.
The decision under appeal had been announced by the Company on January
19, 2010. At that time, the Company indicated that it had received
external legal advice confirming that key aspects of the decision were
flawed and presented strong grounds for appeal. The Court of Appeal
has ruled against the plaintiffs and for the Company and has dismissed
all cross-appeals raised by the plaintiffs. The decision of the trial
judge that the Company may be required to pay additional funds
estimated previously of up to $100 million was set aside. As a result,
there will be no changes to the Company's expected future funding
requirements or any other aspects of the MTS Pension Plan.
"We are pleased that this issue is now resolved, as the judgment affirms
what we have said over the past number of years. We look forward to
putting this behind us," said Pierre Blouin, MTS Allstream's Chief
Executive Officer. "We regret that this process has taken over a decade
to resolve and has been very costly for ourselves, our retirees and our
unions. Nevertheless, MTS pension plans have always been, and continue
to, remain strong."
Over the years, the Company has remained committed to funding this plan,
and contributed and made commitments of approximately $540 million to
this MTS pension plan, over $400 million of which has already been paid
in cash. Employee contributions over the same period totalled $144
million.
A copy of the of the Court's decision is available on MTS Allstream's
website. Please click here to view the decision.
Manitoba Telecom Services Inc. (MTS Allstream)
MTS Allstream is one of Canada's leading national communication
solutions companies, providing innovative communications for the way
Canadians live and work today. The company has more than 100 years of
experience, with 5,500 employees across Canada. MTS Allstream's
business is dynamic and consists of two operating divisions. In
Manitoba, MTS is the leading full-service telecommunications provider
for residential and business customers. MTS's suite of services include
the latest in wireless technology, broadband services, IPTV, voice
services, home security, and an extensive range of business solutions.
Across Canada, Allstream is a leader in IP communications and is the
only national provider that focuses exclusively on the business
telecommunications market.