Nortel Units Ask 3rd Circ. For Arbitration In $7.5B Cash Dispute

Law360, Philadelphia (October 8, 2013, 4:15 PM EDT) -- An attorney for European units of Nortel Networks Inc. on Tuesday asked the Third Circuit to overturn a bankruptcy court ruling and grant binding arbitration to determine how $7.5 billion in asset sale spoils will be divided between the defunct telecom and its far-flung affiliates.

The units, known as EMEA, contend they earlier reached an agreement with the company’s U.S. and Canadian units to take disputes over the allocation of proceeds to arbitration. They also argue that the bankruptcy court approved the arbitration provision when it...
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