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‘Unprecedented’ Nortel ruling spans Canadian and U.S. courts

Thursday, June 18, 2015 @ 8:00 PM | By Jeff Buckstein

One of the largest corporate failures in Canadian history has led to an unusual and controversial multi-jurisdictional decision, as judges in Canada and the United States simultaneously ruled that the remaining U.S. $7.3 billion in assets of bankrupt Nortel Networks Corp. must be distributed on a pro-rata basis to the company’s worldwide subsidiaries, for ultimate delivery to creditors.

Nortel represented an unprecedented case involving insolvencies of many corporations and bankrupt estates in different jurisdictions, said Ontario Superior Court Justice Frank Newbould. “Insolvency practitioners, academics, international bodies,...