$1 Billion Settlement Approved After Six Year Saga - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

$1 Billion Settlement Approved After Six Year Saga


DOVER, Del. (AP) - A Delaware bankruptcy judge has approved a $1 billion settlement between Nortel Networks Corp.'s U.S. unit and bondholders over opposition from the Canadian parent company.

The judge said Thursday that the settlement resolves a major dispute in Nortel's bankruptcy saga, which has dragged on for nearly six years.

The settlement resolves a dispute over whether bondholders holding some $4 billion of debt were entitled to post-bankruptcy interest. The judge ruled that they could receive more than $1 billion in interest.

The Canadian parent company argued that the bondholders were entitled to far less interest, and that it was excluded from settlement discussions.

Courts in the U.S. and Canada still have yet to decide how $7.3 billion in remaining Nortel cash will be allocated among the Canadian, U.S. and European units.

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