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| Home : Nortel Canada Announces Execution of Global Settlement and Support Agreement |
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Oct 13
2016 |
Nortel Canada Announces Execution of Global Settlement and Support Agreement |
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TORONTO, ONTARIO--(Marketwired - Oct. 12, 2016) - Nortel* Networks Corporation ("NNC") and Nortel Networks Limited ("NNL" and together with NNC and certain of their Canadian affiliates subject to proceedings under Canada's Companies' Creditors Arrangement Act ("CCAA"), "Nortel Canada") announced today that they had entered into a Settlement and Plans Support Agreement (the "Global Settlement and Support Agreement") with Nortel Networks Inc. ("NNI"), Nortel Networks UK Limited, certain other global Nortel entities and various significant creditor constituents of the Nortel entities. Subject to its effectiveness, the Global Settlement and Support Agreement provides for a resolution of the allocation dispute regarding the approximately U.S.$7.3 billion of sale proceeds currently held in escrow as well as various other claims, disputes and matters among the parties thereto. Pursuant to the Global Settlement and Support Agreement, Nortel Canada will receive 57.1065% of the sale proceeds in escrow, being approximately U.S.$4.143 billion as at July 31, 2016. The Global Settlement and Support Agreement also provides for, among other things, the release to Nortel Canada of approximately U.S.$237 million of other sale proceeds plus a further amount of sale proceeds relating to the transfer of I.P. addresses by Nortel Canada currently held subject to various court orders, as well as payment to Nortel Canada of U.S.$35 million on account of reimbursement of various costs incurred in connection with the asset sales. |
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| Source:http://www.marketwired.com/mw/release.do?id=2166108&sourceType=3 |
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