Nortel OK'd For $14.2M Payout Amid 'Pandora's Box' Warnings
Law360, Wilmington (June 6, 2016, 7:47 PM EDT) -- Nortel Networks Inc. won Delaware bankruptcy court clearance Monday to pay $14.2 million in uncontested claims from its long-unresolved Chapter 11, with a company attorney saying the limited agreement avoided opening a Pandora’s box of demands from other increasingly restless creditors.
Nortel’s negotiations with Liquidity Solutions Inc. had prompted fresh complaints over lack of progress in distributing funds to creditors from the seven-year-old bankruptcy's $7.3 billion in asset sales, despite professional fee payouts in the case that now total more than $1.9 billion in the U.S., Canada and the U.K. since January 2009.
Nortel had warned that a “thorny mess” could...
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