Nortel Units Spar Over Venue For $7.3B Bankruptcy Feud

Law360, Wilmington (March 7, 2013, 5:19 PM EST) -- Nortel Networks Corp. and its global affiliates locked horns Thursday over whether the decision on splitting $7.3 billion between their respective creditors should be sent to arbitration or left in the hands of U.S. and Canadian bankruptcy judges.

The hearing — linked by video between courts in Delaware and Toronto — was the first skirmish in an international battle over the bulk of $9 billion raised in the defunct telecom’s liquidation, pitting Canada-based Nortel and its U.S. unit against European affiliates who favor arbitration.

The so-called...
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