Bloomberg News

Nortel Networks UK Files for Bankruptcy in U.S.

June 08, 2009

Nortel Networks UK Ltd. filed for Chapter 15 bankruptcy in Delaware to block U.S. lawsuits while it reorganizes overseas. The Nortel companies sought Chapter 11 bankruptcy in the U.S. and Canada in January.

The company, a unit of Nortel Networks Corp. (NY:US), is asking the U.S. Bankruptcy Court to recognize the English proceeding as “foreign main proceedings,” court papers show.

Toronto-based Nortel filed for bankruptcy protection in the U.S. and Canada in January, and in London for its European subsidiaries, after losing $5.8 billion last year as phone companies curbed spending to cope with the slowing economy.

U.K.-based Nortel Networks UK is Nortel’s center of operations and headquarters for its European, Middle East and African group of companies, according to court documents. Similar actions are being taken for 18 other companies in those regions, court papers show.

Alan Robert Bloom, Christopher John Wilkinson Hill, Alan Michael Hudson and Stephen John Harris are the court-appointed administrators and authorized foreign representatives of Nortel Networks UK in the proceedings before the High Court of Justice of England and Wales, according to court papers.

The administrators seek Chapter 15 recognition “to ensure that the comprehensive cross-border restructuring of the Nortel companies progresses in an orderly and efficient way,” court papers show.

The case is In re Nortel Networks UK Ltd., 09-11972, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporters on this story: Dawn McCarty in Wilmington, Delaware, at; Michael Bathon in Wilmington, Delaware, at

To contact the editor responsible for this story: David E. Rovella at

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