Deals
Nortel Creditors Start Mediation Over Splitting $9 Billion
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Creditors of Nortel Networks Corp., the telecommunications company being liquidated in bankruptcy, gathered in Toronto to try for the third time to agree on how to split $9 billion in cash.
The weeklong mediation pits Nortel’s Canadian and U.S. entities and their creditors against the company’s European units and their creditors, who include retirees fighting to retain pensions. About 100 lawyers and financial advisers met briefly today at a hotel in downtown Toronto before breaking up for separate negotiating sessions, Peter Rehak, a spokesman for the Canadian judge overseeing the mediation, said in an e-mail.