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Nortel Networks Settlement Approved, Plan Confirmed

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The U.S. Bankruptcy Court issued an order approving Nortel Networks’ settlement and plans support agreement (SPSA) entered into by and among the Debtors, the Canadian Debtors, the monitor, the EMEA Debtors, the EMEA non-filed entities, the joint administrators, Nortel Networks S.A. (NNSA), the NNSA Conflicts Administrator, the French liquidator, the bondholder group, the Canadian creditors committee (CCC), the creditors’ committee, the U.K. pension trustee, the board of the Pension Protection Fund (PPF) and the joint liquidators and those bondholders of Nortel Networks Capital Corporation (NNCC) who are signatories to the SPSA.

As previously reported, “The Debtors seek to bring closure to the long-running, complex and costly disputes that have consumed these cases since the closing of the $4.5 billion patent sale in 2011….The SPSA increases the Debtors’ allocation of Sale Proceeds when compared with the allocation provided in the Allocation Decisions; resolves a number of significant disputes among the SPSA Parties that would likely require litigation; avoids significant additional costs and delays to distributions to creditors; and forges a pathway to resolution of the Debtors’ Chapter 11 Cases.”

The Court subsequently confirmed Nortel Networks’ revised First Amended Joint Chapter 11 Plan of Reorganization. As previously reported, “Bondholder Contribution means the segregated accounting reserve established by the Debtors to hold the first $4,000,000 of the Creditor Proceeds otherwise available for distribution by the Debtors to holders of allowed Class A-3B Crossover Bonds Claims, which shall be held by the Debtors until the occurrence of the Bondholder Contribution Release Condition and, which shall constitute a distribution to the holders of Crossover Bond Claims for all purposes under the Plan.” This telecommunications equipment supplier filed for Chapter 11 protection on January 14, 2009, listing $9 billion in pre-petition assets.

Read more NNI bankruptcy news.

The post Nortel Networks Settlement Approved, Plan Confirmed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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