Judges Order Nortel Units To Mediate $4B Asset Fight

Law360, New York (June 20, 2011, 9:46 PM EDT) -- A Delaware bankruptcy judge and a Canadian judge on Friday ordered bankrupt telecom Nortel Networks Corp.'s U.S. and European affiliates to take their dispute over how to allocate $4 billion in proceeds from various asset sales to a mediator.

Ontario-based Nortel is working on a plan to divvy up nearly $4 billion from various asset sales between its affiliates before proposing a Chapter 11 plan to pay back creditors. The company’s 19 European units oppose a plan that would allow the U.S. and Canadian bankruptcy courts...
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