BankruptcyData’s detailed analysis and summary of Nortel Network’s First Amended Joint Chapter 11 Plan of Reorganization, dated January 23, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on January 24, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Liquidation Analysis for Reorganized Nortel Networks estimates that the Estimated Liquidation Analysis Recovery for the NNI/NNCC Class 3A: General Unsecured Claims and the Class 3B: Crossover Bonds Claims and EDC Claims to be 53% – 55%.”
BankruptcyData’s Plan Summary also explains, “Nortel Networks Corporation and Nortel Networks Limited and together with certain of their Canadian affiliates subject to proceedings under Canada’s Companies’ Creditors Arrangement Act , entered into a Settlement and Plans Support Agreement with Nortel Networks Inc., Nortel Networks UK Limited, certain other global Nortel entities and various significant creditor constituents of the Nortel entities. The Global Settlement and Support Agreement provides for a resolution of the allocation dispute regarding the approximately U.S. $7.3 billion of sale proceeds currently held in escrow as well as various other claims, disputes and matters among the parties. Pursuant to the Global Settlement and Support Agreement, Nortel Canada will receive 57.1065% of the sale proceeds in escrow, being approximately U.S. $4.143 billion as at July 31, 2016. The Global Settlement and Support Agreement also provides for, among other things, the release to Nortel Canada of approximately U.S. $237 million of other sale proceeds plus a further amount of sale proceeds relating to the transfer of I.P. addresses by Nortel Canada currently held subject to various court orders, as well as payment to Nortel Canada of U.S. $35 million on account of reimbursement of various costs incurred in connection with the asset sales.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Nortel Networks January 14, 2009 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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