Reports have shared that a British pension fund regulator has filed a claim of a whopping 2.1 Billion Pounds against Nortel Networks Corp., the failed telecom equipment manufacturer, once a giant of the sector.

According to reports, the development is all prepared to set the stage for a possible international tug of war between the collapsed company's various creditors from all over the world.

It has shared that a filing to an Ontario court revealed that the UK Pensions Regulator has set March 1 as the deadline for any action, which might just lead to an order against all of Nortel's assets.

"The monitor (Ernst & Young) is asking the court to declare that the initial order stays the commencement of these proceedings and to authorize and direct the monitor and Canadian debtors to refrain from participating in any such proceedings. Any claims the UK Pensions Regulator has should be addressed through the court-approved claims process", Nortel said in an official statement.

No comments have been shared by the British fund on the development.