Nortel Networks SA, Re

Nortel Networks SA, Re

The court has jurisdiction and exercises its discretion to permit the administrators to apply for secondary insolvency proceedings in France, enter into a protocol with French liquidators, and transfer assets subject to conditions, as these steps are in the best interests of the company and its creditors and consistent with the proper purposes of administration under English law and the EC Regulation. The court also orders restriction of inspection of a witness statement due to commercial sensitivity, subject to further application.

Parties
Company/applicant: Nortel Networks SA (in administration)
Jurisdiction
England and Wales
Judgment Date
20 May 2009
Procedural Posture
Insolvency/administration / Application for Directions and Ancillary Orders
Outcome
Application granted
Legal Topics
Secondary Insolvency Proceedings, Administration Orders, Jurisdiction Under EC Regulation, Asset Transfer Conditions, Court File Inspection Restrictions
Insolvency Law Company Law Cross Border Insolvency Secondary Insolvency Proceedings Administration Orders Jurisdiction Under EC Regulation Asset Transfer Conditions Court File Inspection Restrictions

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Parties

Nortel Networks SA (in administration)

Company/applicant

Procedural Posture

Insolvency/administration / Application for Directions and Ancillary Orders

Legal Issues

  1. 1 Whether administrators may apply to the French court for opening of secondary insolvency proceedings under Article 29A of the EC Regulation
  2. 2 Whether administrators may enter into a protocol with French liquidators
  3. 3 Whether administrators may transfer assets to French liquidators subject to conditions

Ratio Decidendi

The court has jurisdiction and exercises its discretion to permit the administrators to apply for secondary insolvency proceedings in France, enter into a protocol with French liquidators, and transfer assets subject to conditions, as these steps are in the best interests of the company and its creditors and consistent with the proper purposes of administration under English law and the EC Regulation. The court also orders restriction of inspection of a witness statement due to commercial sensitivity, subject to further application.

Court Disposition

Application granted

Orders

  • Administrators permitted to apply to the French commercial court for opening of secondary insolvency proceedings under Article 29A of the EC Regulation.
  • Administrators permitted to enter into a protocol with French liquidators substantially in the form produced to the court.