Administrators from EY sign global settlement agreement for Nortel Europe
13 October 2016
Administrators from EY have today announced that they have successfully entered into an out of court settlement of the Nortel global litigation reaching an agreement on how proceeds from the $7.3bn sale of the company's business and its assets across the world will be split.
19 Nortel companies across Europe entered administration on 14 January 2009. Alan Bloom, Alan Hudson, Stephen Harris and Chris Hill of EY were appointed Joint Administrators by the High Court of Justice, Chancery Division. This appointment was part of a coordinated global process, with the group also filing for credit protection in Canada and the US.
Following five years of litigation and four significant rounds of mediation, the latest of which has been ongoing since November 2015, to determine how the proceeds will be split between the various estates, the administrators have now signed a global settlement agreeing the split and ending the litigation between the estates.
Alan Bloom of EY, Joint Administrator, said: “Today is a good day for the European creditors of Nortel Networks including thousands of pensioners and former employees. The settlement, which is subject to court approvals in the US, Canada, UK, and France should enable us to start the process of paying them a significant dividend in the first quarter of 2017.”