The U.S. Bankruptcy Court approved Nortel Networks’ (NNI) motion for entry of an order, pursuant to 11 U.S.C. Sections 105, 363, 503(b) and 507(a)(2) and Bankruptcy Rules 6004(h) and 9019, approving the U.S. claims litigation settlement agreement by and among the Debtors, the official unsecured creditors’ committee, the joint administrators, the EMEA Debtors, Nortel Networks Optical Components Limited, Nortel Telecom France SA, the liquidator, the French liquidator, the U.K. pension parties and certain affiliates. As previously reported, “The Settlement Agreement is a significant milestone for the Debtors in bringing their cases to final resolution, through the settlement and release of claims filed against the Debtors that have been the subject of years of contentious litigation and three mediations. In the wake of the last several months of expedited and broad-sweeping discovery, the Parties seized the opportunity presented by the upcoming close of discovery to explore, and ultimately reach agreement on, the resolution of various claims by and against the Debtors, the UK Pension Parties, the French Liquidator, the EMEA Parties and certain of their affiliates…, the Settlement Agreement provides marked benefits to the Debtors, the EMEA Parties and each of their creditors and stakeholders by bringing finality and certainty to the Debtors’ estates with respect to claims that have been the subject of costly litigation for years and encouraging the coordination of resources and further potential cost savings with respect to the upcoming trial regarding the allocation of the various sale proceeds.” Under the settlement, NNI shall grant an allowed administrative expense priority claim, pursuant to Section 503 of the Bankruptcy Code, in favor of the joint administrators and on behalf of the EMEA parties, against NNI in the amount of $37.5 million. NNI shall grant an allowed administrative expense priority claim, pursuant to Section 503 of the Bankruptcy Code, in favor of the U.K. pension parties against NNI in the amount of $37.5 million.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector–with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.