Tuesday, April 26, 2011

Nortel files for allocation of sales assets

Docket 5307 on the epic web site contains a request by Nortel to have the US and Canadian courts define a deadline and a method for determining the allocation of the funds received from asset sales. The mediation talks which involved 125 individuals broke down after months of debate and thousands of pages of information.

Nortel claims that they cannot move ahead with distribution of funds to legitimate claimants until they are able to determine the amounts of assets that are assigned to each country. Nortel also pointed out that there is a $2billion claim by Nortel US against the Canadian assets. The US group cannot determine what the US assigned assets will be until they know what the assets are assigned to both the US and Canada and also the claims percentage in Canada so that they can factor in the cash received from the Canadian estate into the US estate.

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