The Nortel group of companies filed for insolvency protection across multiple jurisdictions.
Following the sale of Nortel's assets, approximately $7.3 billion was placed in escrow.
The trial judge ordered that these lockbox funds be allocated on a pro rata basis among the various debtor estates, finding that Nortel operated as a highly integrated multinational enterprise and that the master research and development agreement did not govern allocation upon insolvency.
Several parties sought leave to appeal under the Companies' Creditors Arrangement Act.
The Court of Appeal denied leave, finding that the proposed appeals were not prima facie meritorious, did not raise issues of significance to the practice, and would unduly hinder the progress of the proceedings.
