Notice regarding Joint Administrators’ intention to declare a dividend - December 2015
The Joint Administrators recently notified creditors of their intention to declare a dividend to the non-preferential, unsecured creditors of Nortel Networks UK Limited by 31 December 2015. Since the date of that notice matters have come to light that have led the Joint Administrators to conclude that they are not currently in a position to declare a dividend. As such the Joint Administrators applied to the High Court for an extension of the time period within which the Joint Administrators must declare a dividend pursuant to rule 2.97 of the Insolvency Rules 1986.
The High Court heard the Joint Administrators’ submissions and granted the Joint Administrators’ request by an order dated 2 December 2015, postponing the date by which a dividend must be declared to 30 September 2016. A copy of the order is attached below.
The extension of the time period does not of itself mean that the Joint Administrators will not be in a position to declare a dividend before September 2016. The Joint Administrators will continue to review the position of the Company and proceed to declare a dividend in accordance with their obligations at such time as it is appropriate to do so. Creditors will be notified of the declaration at the relevant time.