Massive Mediation Is Third Attempt to Resolve MultiNational Nortel Bankruptcies
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About 100 lawyers and financial advisors of creditors of Nortel Networks Corp. participated in a lengthy mediation in Toronto to try for the third time to divide $9 billion among the creditors of Nortel’s Canadian, U.S. and European entities and units, which involve numerous pension funds and disabled workers, along with bondholders, trade creditors and governments. Canadian creditors alone have filed more than $36 billion in claims. Nortel filed for bankruptcy in 2009 in Toronto, Delaware, the U.K. and France, and if mediation is not successful, conflicting rulings by
different judges in the four jurisdictions could well occur. Nortel incurred legal fees of $1.25 million in a month from a U.S. law firm, and one report asserts that total fees incurred by Nortel exceed $750 million since negotiations first began. The mediator twice extended what began as a week-long mediation, but abruptly ended the mediation on the eleventh day, concluding that no further efforts were worthwhile.
News 1130 (January 25, 2013); Bloomberg News (January 22, 2013); Bloomberg News (January 14, 2013)
Read original articleTags: Nortel, Nortel Networks Corp.
