Nortel group, Re (Global Settlement)

Nortel group, Re (Global Settlement)

The court is satisfied that the administrators and conflict administrator have rationally and properly concluded that the Global Settlement is in the best interests of the EMEA Companies and their creditors, eliminates litigation risks, provides certainty and finality, and is a momentous decision warranting court approval. The court approves and authorises implementation of the Global Settlement.

Parties
Applicant: Nortel Networks UK Limited; Applicant: Nortel Networks Hispania SA; Applicant: Nortel Networks (Austria) GmbH; Applicant: Nortel Networks SRO; Applicant: Nortel Networks S. A.; Applicant: Nortel Networks Engineering Service KFT; Applicant: Nortel Networks (Ireland) Limited; Applicant: Nortel GmbH; Applicant: Nortel Networks France SAS; Applicant: Nortel Networks OY; Applicant: Nortel Networks Romania SRL; Applicant: Nortel Networks Portugal SA; Applicant: Nortel Networks AB; Applicant: Nortel Networks International Finance & Holding BV; Applicant: Nortel Networks NV; Applicant: Nortel Networks Slovensko; Applicant: Nortel Networks S. P. A.; Applicant: Nortel Networks BV; Applicant: Nortel Networks Polska SP. Z. O. O; Applicant: Conflict Administrator of Nortel Networks S. A.
Jurisdiction
England and Wales
Judgment Date
03 November 2016
Procedural Posture
Insolvency Directions Application / Judgment on Application for Court Approval of Global Settlement
Outcome
application granted
Legal Topics
Administrator Powers, Settlement Approval, Distribution of Assets, Pension Liabilities, Allocation of Proceeds, Court Directions
Insolvency Company Law Cross Border Insolvency Administrator Powers Settlement Approval Distribution of Assets Pension Liabilities Allocation of Proceeds +1 more

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Parties

Nortel Networks UK Limited

Applicant

Nortel Networks Hispania SA

Applicant

Nortel Networks (Austria) GmbH

Applicant

Nortel Networks SRO

Applicant

Nortel Networks S. A.

Applicant

Nortel Networks Engineering Service KFT

Applicant

Nortel Networks (Ireland) Limited

Applicant

Nortel GmbH

Applicant

Nortel Networks France SAS

Applicant

Nortel Networks OY

Applicant

Nortel Networks Romania SRL

Applicant

Nortel Networks Portugal SA

Applicant

Nortel Networks AB

Applicant

Nortel Networks International Finance & Holding BV

Applicant

Nortel Networks NV

Applicant

Nortel Networks Slovensko

Applicant

Nortel Networks S. P. A.

Applicant

Nortel Networks BV

Applicant

Nortel Networks Polska SP. Z. O. O

Applicant

Conflict Administrator of Nortel Networks S. A.

Applicant

Procedural Posture

Insolvency Directions Application / Judgment on Application for Court Approval of Global Settlement

Legal Issues

  1. 1 Should the court approve and authorise the administrators and conflict administrator to implement the Global Settlement?
  2. 2 Is the proposed exercise of powers by administrators rational, lawful, and in the best interests of the companies and creditors?
  3. 3 Have all relevant interests and risks been considered, including creditor notice and engagement?

Ratio Decidendi

The court is satisfied that the administrators and conflict administrator have rationally and properly concluded that the Global Settlement is in the best interests of the EMEA Companies and their creditors, eliminates litigation risks, provides certainty and finality, and is a momentous decision warranting court approval. The court approves and authorises implementation of the Global Settlement.

Court Disposition

application granted

Orders

  • Administrators and conflict administrator are authorised and directed to implement the Global Settlement.
  • Confidentiality order to preserve legal advice and projections until after settlement effectiveness.