A US bankruptcy court has reportedly dismissed some of the claims of European subsidiaries against bankrupt Canadian vendor Nortel Networks.
Dow Jones reported that the Delaware bankruptcy court dismissed legal arguments that the US part of Nortel had…
A US bankruptcy court has reportedly dismissed some of the claims of European subsidiaries against bankrupt Canadian vendor Nortel Networks.
Dow Jones reported that the Delaware bankruptcy court dismissed legal arguments that the US part of Nortel had been dominant over the affairs of the British, French and Irish subsidiaries such that it could be held to account for alleged breaches of fiduciary duty to those subsidiaries.
But not all the claims were dismissed. Reuters reported that the administrators can go ahead with claims that Nortel had aided and abetted the alleged mismanagement of the European subsidiaries.
But Judge Kevin Gross reportedly said these claims were weak and unlikely to succeed.
Nortel was not immediately available for comment.
Nortel filed for bankruptcy protection in January 2009 and has since sold off large parts of its business, including its patent portfolio.
