3rd Circ. Rules Out Arbitration In $7.5B Nortel Cash Dispute
By Michael Lipkin
Law360, Los Angeles (December 6, 2013, 3:29 PM ET) -- A Third Circuit panel on Friday declined to compel arbitration between Nortel Networks Corp. units and their creditors in a battle over the defunct Canadian telecom company’s $7.5 billion in liquidation proceeds, ruling the contract at the heart of the dispute did not require arbitration.
The panel affirmed a bankruptcy court decision rejecting Nortel’s U.K. arm’s request to prevent the U.S. court from deciding the dispute over the company's asset allocation. As Nortel declared bankruptcy, the company’s subsidiaries banded together to sell assets and signed an...