Nortel Networks, which declared bankruptcy in 2009 and...
Nortel Networks, which declared bankruptcy in 2009 and raised $7.5 billion auctioning its remaining assets, doesn’t have to allocate those funds through arbitration, the 3rd U.S. Circuit Court of Appeals said Friday (http://1.usa.gov/1bNzyBV). “Because the contract at the center of…
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this controversy does not reflect the parties’ intent to arbitrate disputes about the auction funds, we will not compel the parties to do so,” wrote the court, affirming a federal bankruptcy court holding. The unanimous opinion was written by Judge Julio Fuentes and joined by Judge Morton Greenberg and Senior Judge Maryanne Barry. The various debtors comprising the Nortel brand “have $7.5 billion and no agreed-upon method for dividing it,” the court said, noting the bankruptcy court would hold a hearing to allocate the funds.