Nortel Networks resolves more than $3 bln in bankruptcy claims

Tuesday, 17 Dec 2013 | 10:52 AM ET

Dec 17 (Reuters) - Nortel Networks Inc, a defunct telecoms company, has agreed to settle claims that it owed more than $3 billion to former Nortel entities in Europe in a deal that it called a "significant milestone" to ending its five-year bankruptcy.

In return for withdrawing the claims, administrators of insolvent Nortel entities in Britain and elsewhere in Europe would each receive high-priority administrative claims for $37.5 million, according to a Tuesday court filing.

The parties also agreed to work together to try to resolve how to divide $7.5 billion in cash that was raised from liquidating the former Canadian telecommunications equipment maker, according to the documents filed in Delaware's U.S. Bankruptcy Court.