On January 14, 2009, after extensive consideration of all other alternatives, and after thorough consultation with our advisors, Nortel initiated creditor protection proceedings in multiple jurisdictions under the respective restructuring regimes of Canada under the Companies’ Creditors Arrangement Act, the United States under Chapter 11 of the U.S. Bankruptcy Code, the United Kingdom under the Insolvency Act 1986, and subsequently in other jurisdictions.
Since determining in June 2009 that selling its businesses was the best path forward, Nortel has sold all of its businesses as well as its patents and patent applications generating approximately US$7.7 billion in net proceeds for the benefit of its creditors, and preserving 16,000 jobs for employees with the purchasers of the businesses and assets. Nortel remains focused on maximizing value for its stakeholders, including the sale of its remaining assets, resolution of claims, the wind-down of its global operations and entities, resolution of allocation matters with respect to the sale proceeds, and other significant restructuring activities toward the conclusion of the creditor protection proceedings.
For further information regarding Nortel’s creditor protection proceedings, visit the site of Nortel’s court-appointed Monitor, Ernst & Young Inc.