Judges in Delaware and Canada have decided to settle claims for bankrupt Nortel’s estimated $9 billion in assets through a joint trial.
According to Reuters, the judges declared Friday that the trial would take place across the two countries’ borders simultaneously.
The judges, who have been tasked with handling the huge Nortel bankruptcy, could have oped for international arbitration/
Kevin Gross, a U.S. Bankruptcy Court judge in Wilmington, Delaware, and Ontario Superior Court Justice Geoffrey Morawetz in Toronto are the judges.
Nortel declared bankruptcy in 2009. The company once employed thousands of people in RTP.
As much as $9 billion in assets is at stake.
Nortel’s representatives enter the hearings buoyed by a victory on Tuesday when the U.S. judge ruled that the company did not have to disclose the identity and fees of professionals they have hired to assist in the bankruptcy, according to Law 360. Nortel was fighting new rules that required disclosure. Nortel’s secrecy had led to protests by some parties involved in the suit.
Meanwhile, in the bankruptcy hearings today, Reuters reports that the results not only will affect creditors but retirees.
Nortel has reached settlements with former U.S. workers for some $95 million that os expected to be divided among retirees and disabled workers.
The new hearings follow the failure of multiple parties to reach a settlement during mediation hearings held in January in Canada.
“The issues which remain for decision are imposing,” the U.S. wrote on February 14 in an order scheduling the hearing, Reuters noted.