Nor­tel to start pay­ing bil­lions to cred­i­tors

The Hamilton Spectator - - BUSI­NESS - THE CANA­DIAN PRESS

TORONTO — Nor­tel Canada’s long-suf­fer­ing cred­i­tors will fi­nally be­gin to re­ceive their share of more than US$4 bil­lion to be dis­trib­uted un­der a plan ap­proved in Jan­uary, eight years af­ter the for­mer tech­nol­ogy ti­tan be­gan bank­ruptcy pro­ceed­ings.

Nor­tel Net­works Corp. — the for­merly public multi­na­tional com­pany that was head­quar­tered in Canada — an­nounced Friday that the ini­tial dis­tri­bu­tion of the money is ex­pected to be made in late June or early July.

The dis­tri­bu­tions will in­clude US$4.165 bil­lion that Nor­tel Canada has now re­ceived as its share of a ne­go­ti­ated set­tle­ment af­ter a years­long bat­tle over a to­tal of US$7.3 bil­lion raised by the sale of the com­pany’s world­wide as­sets.

Nor­tel Canada will make its pay­ments in stages to bond­hold­ers, sup­pli­ers and for­mer em­ploy­ees who filed claims against the Cana­dian por­tion of the busi­ness, which was at one time among the world’s big­gest net­work sup­pli­ers.

The ex­act tim­ing and amounts of the pay­ments are yet to be de­ter­mined, but Nor­tel’s court-ap­pointed mon­i­tor has said that cred­i­tors will get less than half of what they’d claimed.

Cred­i­tors with claims pri­mar­ily in Cana­dian dol­lars will be en­ti­tled to be­tween 45 and 49 cents per dol­lar owed. Cred­i­tors with claims in other cur­ren­cies will re­ceive be­tween 41.5 and 45 cents in U.S. cur­rency.

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