Nortel given thumbs up to pay $7.3bn to creditors
25 January 2017 | James Pearce
An end to the Nortel Networks bankruptcy saga appears to be on the horizon after the troubled firm won approval to start distributing $7.3 billion to creditors.
According to Reuters, Judge Frank Newbould, representing the Superior Court of Justice in Toronto, and Judge Kevin Gross, of the US Bankruptcy Court in Delaware, rubber-stamped Nortel’s plan to pay back creditors.
Ciena picked up its Ethernet networking business for $769 million, while Ericsson took on its CDMA and LTE assets for $1.13 billion. The Swedish firm also invested in Nortel’s GSM arm, alongside Kapsch.
Embattled Avaya – a company which itself filed for Chapter 11 protection last week amid reported debts of around $6.3 billion – was also involved, buying Nortel’s enterprise solutions unit.
Newbould said it was unfortunate the "case wasn't settled sooner without the added expense and delay caused by the litigation” according to Reuters.
20h | Jason McGee-Abe
21h | Alan Burkitt-Gray
22h | Natalie Bannerman
22h | Alan Burkitt-Gray