On January 14, 2009 Nortel Networks Inc. (“NNI”) and certain of its affiliated U.S. debtors filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code before the United States Bankruptcy Court for the District of Delaware. NNI and its affiliated U.S. Debtors continue to operate as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.
On January 14, 2009, NNI’s ultimate corporate parent Nortel Networks Corporation, NNI’s direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (Canada) seeking relief from their creditors. Also on the January 14, 2009, the High Court of England and Wales placed nineteen of NNI’s European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world.
Since the commencement of its various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. For further information regarding NNI’s and its affiliated U.S. Debtors’ chapter 11 cases, reference may be made to the Monthly Operating Reports filed by the U.S. Debtors at http://dm.epiq11.com/nortel.