Nortel Networks eyes $1.3 million settlement with Flextronics

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Nortel Networks Inc. asked the court to approve a settlement with Nortel hardware vendor Flextronics Corp., Flextronics Telecom Systems Ltd. and certain of their affiliates, as well as a related side agreement among the debtors and the Canadian debtors, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for Dec. 30.

Under the settlement, Nortel Networks will pay Flextronics US$1.3 million for release of claims.

Under the side agreement, which reconciles an overpayment related to intercompany receivables, Nortel Networks Ltd. will pay $5 million to Nortel Networks Inc.

Nortel, a Brampton, Ont.-based manufacturer and supplier of telecommunications networking equipment, filed for bankruptcy on Jan. 14, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10138.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.