NOTICE REGARDING THE OCCURRENCE OF THE PLANS EFFECTIVE DATE AND RELEASE OF THE PURCHASE PRICE ALLOCATION MONIES FROM THE LOCKED BOX

 

9 May 2017

Nortel Networks UK Limited
Nortel Networks S.A.
Nortel GmbH
Nortel Networks France S.A.S.
Nortel Networks N.V.
Nortel Networks S.p.A.
Nortel Networks B.V.
Nortel Networks Polska Sp. z o.o.
Nortel Networks Hispania, S.A.
Nortel Networks (Austria) GmbH
Nortel Networks s.r.o.
Nortel Networks Engineering Service Kft.
Nortel Networks Portugal, S.A.
Nortel Networks Slovensko s.r.o.
Nortel Networks Oy
Nortel Networks Romania SRL
Nortel Networks AB
Nortel Networks International Finance & Holding B.V.
Nortel Networks (Ireland) Limited

Together "the Companies".

We provide a further update on the progress being made on the journey towards the “Plan Effective Date” and release of the monies from the locked box.

As you are aware, in October 2016 the Joint Administrators entered into arrangements with companies in the wider Nortel Group, including those in Canada and the USA and with certain other major stakeholders, to initiate steps to end and settle on agreed terms the PPA dispute which has been ongoing for a number of years in North America following the very successful global disposals of the Nortel businesses and intellectual property.

These arrangements were conditional on certain formal steps being taken.

The Joint Administrators are pleased to announce that these formal steps have been completed and that the Plans Effective Date occurred on 8 May 2017. As such the global settlement agreed in October 2016 is now fully effective.

As such, the Joint Administrators expect that the Company will start to receive funds from escrow on 11 May 2017, with the balance of funds anticipated to be received over the course of May 2017.

The Joint Administrators consider this to be another major milestone, very welcome and extremely good news for the creditors of the Companies.

Given the above, the Joint Administrators are targeting a first distribution to the creditors of Nortel Networks UK Limited before the end of July 2017 and first distributions to the creditors of the EMEA entities in Q4 2017. The distributions to creditors of those EMEA entities where a CVA has been proposed by the Joint Administrators remain dependent upon the successful approval by the creditors of the proposed CVAs and the granting of orders of the English Court in respect of Expense Bar Date Applications on which we updated creditors separately earlier this month. In the case of NNSA, the Joint Administrators anticipate proposing a CVA later in the summer and will provide further update in due course.

 

For the Companies listed below, The Institute of Chartered Accountants in England and Wales in the UK authorises A R Bloom, S J Harris, C J W Hill and S J Taylor to act as Insolvency Practitioners under section 390(2)(a) of the Insolvency Act 1986 and the Association of Chartered Certified Accountants in the UK authorises A M Hudson and D M Hughes to act as Insolvency Practitioners under section 390(2)(a) of the Insolvency Act 1986.

The affairs, business and property of the Companies are being managed by the Joint Administrators, A R Bloom, S J Harris, A M Hudson and C J W Hill who act as agents of the Companies only and without personal liability.

The Companies are Nortel Networks UK Limited; Nortel GmbH; Nortel Networks France S.A.S.; Nortel Networks N.V.; Nortel Networks S.p.A.; Nortel Networks B.V.; Nortel Networks Polska Sp. z o.o.; Nortel Networks Hispania, S.A.; Nortel Networks (Austria) GmbH; Nortel Networks s.r.o.; Nortel Networks Engineering Service Kft.; Nortel Networks Portugal, S.A.; Nortel Networks Slovensko s.r.o.; Nortel Networks Oy; Nortel Networks Romania SRL; Nortel Networks AB; Nortel Networks International Finance & Holding B.V..

The affairs, business and property of Nortel Networks (Ireland) Limited are being managed by the Joint Administrators, A R Bloom and D M Hughes, who act as agents of Nortel Networks (Ireland) Limited only and without personal liability.

The affairs, business and property of Nortel Networks S.A. are being managed by the Joint Administrators, A R Bloom, S J Harris, A M Hudson, C J W Hill and S J Taylor who act as agents of Nortel Networks S.A. only and without personal liability.

Nortel Networks S.A. was placed into French liquidation judiciaire on 28 May 2009. The business and assets of the company that are situated in France are now under the control of la liquidateur judiciaire.

We advise that this report is provided pursuant to our appointments as Joint Administrators of the Company. It is provided solely for the purpose of informing creditors of certain aspects of the current status of the Administration. As this report is only an interim indication of the overall position of the Company, and not a valuation of the current or future value of any particular item of debt, and is liable to change, it should not be relied upon as an indication of the final return to creditors and, in particular, neither we nor the Company shall have any responsibility to any person who relies on our report for the purpose of trading in debt of the Company.

The Joint Administrators may collect, use, transfer, store or otherwise process (collectively, “Process”) information that can be linked to specific individuals (“Personal Data”).  They may Process Personal Data in various jurisdictions in accordance with applicable law and professional regulations including (without limitation) the Data Protection Act 1998.