Bad news for NT, What is impact?

[闲得慌]

Globe says 360networks creditors sue Nortel

Nortel Networks Corp NT

The Globe and Mail reports in its Thursday edition that unsecured creditors of 360networks have sued Nortel Networks, trying to recover $101-million that 360networks allegedly transferred to Nortel before the company filed for bankruptcy protection in 2001 (all figures U.S.). The Globe's Dave Ebner writes that the lawsuit, filed in U.S. Bankruptcy Court in New York, is based on "preferential transfers" -- payments made by a company in the 90 days before it files for court protection. Creditors can attempt to recover such payments under U.S. bankruptcy laws for the benefit of all creditors. The creditors plan a series of such lawsuits in the next month, said Norman Kinel, a partner at Sidley Austin Brown & Wood in New York. Mr. Kinel said 200 or 300 additional suits could be filed, aiming to recover about $300-million, including the $101-million sought from Nortel. "In my experience, these actions are very successful," Mr. Kinel said. A pretrial meeting is planned for Feb. 20. Nortel said the lawsuit is without merit. Last November, 360networks Inc. re-emerged as 360networks Corp. with about $215-million in bank debt. The group includes suppliers and construction companies.

 

[terry]

最初由 闲得慌 发布
Globe says 360networks creditors sue Nortel

Nortel Networks Corp NT

The Globe and Mail reports in its Thursday edition that unsecured creditors of 360networks have sued Nortel Networks, trying to recover $101-million that 360networks allegedly transferred to Nortel before the company filed for bankruptcy protection in 2001 (all figures U.S.). The Globe's Dave Ebner writes that the lawsuit, filed in U.S. Bankruptcy Court in New York, is based on "preferential transfers" -- payments made by a company in the 90 days before it files for court protection. Creditors can attempt to recover such payments under U.S. bankruptcy laws for the benefit of all creditors. The creditors plan a series of such lawsuits in the next month, said Norman Kinel, a partner at Sidley Austin Brown & Wood in New York. Mr. Kinel said 200 or 300 additional suits could be filed, aiming to recover about $300-million, including the $101-million sought from Nortel. "In my experience, these actions are very successful," Mr. Kinel said. A pretrial meeting is planned for Feb. 20. Nortel said the lawsuit is without merit. Last November, 360networks Inc. re-emerged as 360networks Corp. with about $215-million in bank debt. The group includes suppliers and construction companies.

I don't think it will impact NT share price so much, because NT used to have even bigger law suit, like one Mexcico Telecom files over 400 millions law suit against Nortel. Usually the lawsuit will take a long time to finish.

 

[市丸]

Hope to be alright.