The latest development in what has been a long-running (and expensive) cross-border insolvency proceeding involving Nortel (see our June 2015 and September 2015 legal updates for previous instalments) is a settlement between:
- 19 European, Middle Eastern and African (EMEA) companies in the Nortel Group and other entities in the Nortel group
- The EMEA companies and certain UK pension schemes and regulators
- The EMEA companies themselves.
The settlement agreement required the administrator of the EMEA companies, and the conflict administrator for one EMEA company, to obtain court approval to implement the settlement. The High Court approved the implementation of the settlement for various reasons, including the certainty and finality it provided creditors of the entities. Following the Court's approval, the settlement now needs to be approved by creditors and the courts in Canada and the USA.
See Court decision here