SUPERIOR COURT OF JUSTICE – ONTARIO
(COMMERCIAL LIST)
COURT FILE NO.: 09-CL-7950
DATE: 20131122
RE: IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36, AS AMENDED
AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF NORTEL NETWORKS CORPORATION, NORTEL NETWORKS LIMITED, NORTEL NETWORKS GLOBAL CORPORATION, NORTEL NETWORKS INTERNATIONAL CORPORATION AND NORTEL NETWORKS TECHNOLOGY CORPORATION, Applicants
BEFORE: MORAWETZ J.
COUNSEL:
A. Mark, J. Pasquariello and C. Armstrong, for Ernst & Young Inc., Monitor
R. Swan and G. Finalyson, for Noteholders Group
J. Stam, for the Canadian Debtors
M. Zigler, for the Former & Disabled Canadian Employees
S. Bomhof, for Nortel Networks Inc. and US Debtors
M. Milne-Smith, for the EMEA Debtors
K. D. Kraft, for Wilmington Trust
P. Cavanagh and R. Jacobs, for the Unsecured Creditors Committee
J. Galway, for Northern Trust Canada
E. A. Putnam, for the Nortel Directors and Officers
HEARD &
ENDORSED: NOVEMBER 19, 2013
REASONS: NOVEMBER 22, 2013
ENDORSEMENT
1At the conclusion of the hearing on November 19, 2013, parties were informed that the trial would now start on May 12, 2014 for 20 days. These are the reasons.
2The parties proposed a deferral of the trial from April 1, 2014 to April 28, 2014. Counsel to the Bondholders objected to extending the trial date at this time – but they were content to extend interim timetable dates. Other parties, including counsel to the Former Employees supported a four-week deferral.
3It is apparent, having reviewed the record and hearing submissions, that maintaining a trial date of April 1, 2014 could result in a chaotic trial. I considered deferring the start of trial to April 28, 2014, but the parties could not provide any degree of certainty that April 28, 2014 would be a realistic start date. A “rolling” start date is undesirable.
4In my view, it is a better approach to achieve certainty with the start date – even if an additional delay is the result.
5The trial is rescheduled to start May 12, 2014, peremptory to all parties, and will run for 20 days. A trial management conference is to take place two weeks before the start of trial. A Case Management Conference is also scheduled for January 29, 2014.
6The court continues to be concerned about the costs of this litigation. To this end, I am requiring comprehensive fee and disbursement summaries from all parties to the litigation. Summaries are to cover the period from May 1, 2013 to present. Mr. Armstrong – counsel to the Monitor – is to coordinate and submit the information by November 20, 2013 [Information has since been received]. Parties who are not funding the litigation from the estate must still provide this information – unless they waive all future claims for reimbursement of these fees, including reimbursement through costs claims.
MORAWETZ J.
Date: November 22, 2013