Nortel’s fate to be decided in transborder trial
Nortel’s demise has been anything but straightforward with investors from all over the world looking to get their worth from the company.
However, a ruling made by judges from both Canada and the US will look to try and bring a final end to the company’s misfortune by announcing that the company will go through just one trial to tie up all the loose ends surrounding the bankruptcy.
The trial would look to find a way to pay all of the company’s North American creditors both within Canada and the US who had been left out of pocket since the firm’s bankruptcy started in 2009.
After having previously being one of the world’s leading telecom companies, Nortel were hit by a series of problems leading to the firm ceasing operations 4 years ago.
Friday’s joint meeting between judges both sides of the border looks like it will sort out the rather messy situation surrounding what Nortel owns to its various creditors.
In the announcement, it was revealed that there would be a cross-border trial that would see both Canadian and American judges settle the multi-billion dollar dispute that Nortel has been involved since going under.
Creditors shouldn’t expect to wait too long though as judges have told lawyers to be ready for later on this suggesting that the trial might begin either in the fall or at the start of winter.
The dispute is based around $9bn that Nortel owes to everyone who had assets tied into the company once it went into bankruptcy.
This included anyone who worked for the company at the time alongside those who had pensions or business contracts with the former telecom giant.
It won’t be a small list of those wanting a piece of Nortel as the creditor network extends across not just North America but to Europe as well.
Even though the trial will stretch across the border, the rest of Nortel’s bankruptcy proceedings will be overseen by Ontario Superior Court Justice Geoffrey Morawetz in Toronto.
With the trial being spread across both borders, it should hopefully settle the Nortel dispute once and for all and bring closure to the fallen Canadian telecom giant.
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