The Globe and Mail has reported that total legal bills amounting from the Nortel bankruptcy have passed $2 billion. That is a staggering amount especially considering that the amount raised from selling off of all the Nortel assets was $7.3 billion.
In May of this year, it was announced that Judges in Delaware and Ontario jointly decided to divide the remaining US$7.3 billion in Nortel assets on a pro-rata basis between bond holders, pensioners, and global subsidiaries. (see Assets Split ) Pensioners and other creditors were finally hoping to get a pay-out. But no such luck. Unless last minute mediation proves fruitful next week, there will be appeals to the ruling on both sides of the Canada-US border.
Lawyers representing the various groups must be ecstatic. But what will be left for pensioners and creditors? Perhaps a guide comes from reading Charles Dickens and his classic novel Bleak House, or watching the BBC production of the same. I highly recommend it to all the Nortel stake-holders.
After Nortel filed for bankruptcy, $7.3 billion was raised as their various assets were sold off, including their Optera optical transport group to Ciena, their DMS switching group to Genband, their Enterprise business to Avaya, their Passport data products to Hitachi, and their GSM business to Ericsson and Kapsch.
The Globe and Mail article is at The Globe
For historical perspective on the Nortel bankruptcy, Nortel bankruptcy