The case was put on the back burner. Now comes things moving.
(Picture: jean francoeur CC-BY 2.0)
More than 7 years after the collapse of the Canadian network equipment, there is the first time an almost complete agreement on the distribution of mass. Next year could flow of money, therefore, still all of the conditions are not met.
In 2009, the Canadian telecoms equipment supplier Nortel has applied for bankruptcy protection, even though he had 2.4 billion dollars in cash. The sale of assets has brought a further 7.3 billion dollars. However, to date the creditors wait their share. For years has been processed, negotiated and managed, which cost billions. On Thursday a preliminary agreement has finally been achieved. Next year could flow money.
Read the bankruptcy of the telecom equipment supplier Nortel also: millions for managers billion for financial firms
But the 145-page agreement does not say from which creditors get how much money. It distributes only the 7.3 billion from the mass recovery and some relatively small amounts on the consolidated countries, particularly Canada, the US, UK and France.
Of particular importance is the comprehensive settlement of intercompany receivables and liabilities. These international entanglements have made the bankruptcy process so complex that it would be the most expensive bankruptcy case in history. The settlement costs are expected at the end of which have exceeded 2.2 billion US dollars the collapse of Lehman Brothers.
Nix is fix
New legal territory: 2 trial across borders "parallelized",(Photo: Daniel AJ Sokolov)
Courts in the four mentioned countries have yet to give their approval before the plan can take effect. The bankruptcy courts in Canada and the US will meet simultaneously on December 1, 2016 and again on 24 January 2017th Before that, two groups of bondholders in the US must give at least 67% of their claims their seal of approval.
Two main outsiders might try to stop the deal in court. A known as Trade Claims Consortium group of US creditors calls for more than 125 million dollars and has not joined the comparison. To even 708 million US dollars, it is the state pension insurer failure of the US, the Pension Benefit Guaranty Corporation (PBGC), which is also not on board.
but if all goes well, the agreement will enter into force on 15 February 2017th As Latest Date August 31 next year has been set. In the agreement, the parties promise each other too, set all running against each other judicial proceedings and shall, upon request information and documents.
The planned timetable(Picture: Nortel Settlement)
In the comparison that will carry over 160 signatures, the Nortel companies whose bankruptcy administrator, and representatives of the main groups of creditors have agreed on the following distribution key: Around 57.1 percent go to Canada, 24.4 percent in the United States, 14 percent to the UK and 4.5 percent to the other Nortel companies in Europe. The individual Nortel companies then have to distribute among their respective debtors the money.
These amounts are to demands of proportion. To Canada while the highest total flows, but are at the former Group headquarters and the highest debt to book. So the Canadian creditors, including tens of thousands of former employees and retirees 40 percent of their claims have estimated with the lowest rate of content.
European creditors can hope for 65 percent, while US creditors can expect 80 to 90 percent. All these rates are extremely high for a bankruptcy, which is why it is doubtful whether Nortel 2009 really was broke.
Signboard Nortel Networks' in Frankfurt / Main(Image:Allie Caulfield CC BY 2.0 )
Within the European group travels a fixed amount of 220 million euros to France to Nortel Networks SA. The rest is distributed by percentage.
For the former Nortel Networks Germany 0.2985% of the total mass are set, which should bring about 21.7 million US dollars. Nortel Networks Austria waving 0.0117% of the mass, or $ 850,000, according to some treaty text. The exact amounts of money are far from fixed. The exact mass capability will slightly change, also various fees are deducted.(Ds)