Nortel Obtains Court Orders for Creditor ProtectionWednesday, January 14th, 2009
TORONTO – Nortel Networks Corporation [NYSE/TSX: NT] announced that further to its press release issued earlier today, the Company, Nortel Networks Limited and certain other Canadian subsidiaries have obtained an Order from the Ontario Superior Court of Justice (the “Canadian Court”) for creditor protection pursuant to the provisions of the Companies’ Creditors Arrangement Act (“CCAA”).
Under the terms of the Order, Ernst & Young Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in formulating its restructuring plan.
Nortel Networks Inc also brought an application and obtained an Order in the Canadian Court recognizing the Chapter 11 cases in the U.S. as “foreign proceedings” in Canada and giving effect to the automatic stay under the U.S. Bankruptcy Code in Canada.
Additionally, Nortel Networks UK Limited (“NNUK”) and certain subsidiaries of the Nortel group incorporated in the EMEA region (the “EMEA Subsidiaries”, and collectively with NNUK, the “EMEA Companies”) have each obtained an administration order from the English High Court of Justice (“the English Court”) under the Insolvency Act 1986 (“IA”). The applications were made by the EMEA Subsidiaries under the provisions of the European Union’s Council Regulation (EC) No 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary’s centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the IA.