In Companies’ Creditors Arrangement Act proceedings involving the Nortel corporate group, the Canadian debtor entities moved for approval of an Allocation Protocol governing the distribution of sale proceeds among various affiliated estates and stakeholders.
The court approved the protocol substantially in the form originally proposed, subject to modifications requiring reliance on the June 7, 2011 protocol version and expansion of the list of “core parties” to include additional indenture trustees.
The court directed the Monitor to prepare a revised list of core parties and coordinate a litigation schedule for resolving allocation disputes.
A cross-motion by the Joint Administrators of a UK affiliate seeking to compel arbitration of allocation disputes under the Interim Funding and Settlement Agreement was dismissed.
The appeal period was deferred until the release of full reasons coordinated with reasons of the United States Bankruptcy Court for the District of Delaware.
