Nortel Networks’ plan for a US$75m settlement with a number of insolvent European affiliates has been approved by a US bankruptcy court.
The Canadian equipment maker, which filed for creditor protection and ceased operating in 2009, was reported to…
Nortel Networks’ plan for a US$75m settlement with a number of insolvent European affiliates has been approved by a US bankruptcy court.
The Canadian equipment maker, which filed for creditor protection and ceased operating in 2009, was reported to have described the decision as a “significant milestone” in its journey to exit bankruptcy.
The next significant date in the Nortel liquidation is a trial scheduled for May that will decide how to divide the defunct vendor’s cash pile – which runs into the billions – between various creditors.
This week’s decision by the US bankruptcy court in Delaware will mean that a number of Nortel affiliates in Europe will abandon their US$3bn-plus claims against the company, according to a Reuters report.
Nortel first filed for creditor protection in early 2009 and since agreed to sell off large parts of its business, including its patent portfolio. It agreed to sell the majority of the patents in a US$4.5bn deal to a consortium of Apple, Ericsson, Microsoft, RIM and Sony.
The vendor ceased trading in 2009 and delisted its shares. It raised around US$7.5bn in total from asset and patent sales.
