Professional Fees in Nortel Networks Bankruptcy are Massive, With a High Burn Rate Continuing

By: Donald L. Swanson Some not-surprising facts about professional fees in the Nortel Networks bankruptcy are: --The total amount is massive; and --The burn-rate continues without abatement. Keep in mind that: --The primary question in the Nortel Networks bankruptcy is this: How should a $7.3 billion sale proceeds fund be distributed? --Professional fees in the... Continue Reading →

Usual Formula [Unsecured Claim + Bankruptcy = You Lose] Doesn’t Apply (the Nortel Networks Bankruptcy, Part six)

By: Donald L Swanson Unsecured Claim + Bankruptcy = You Lose. I came up with this formula back in 1983, while preparing for a seminar presentation on basic bankruptcy law.  I was trying to come up with something creative to say.  And . . . I must confess . . . I thought it was... Continue Reading →

A 2011 Judicial Scolding Had No Discernible Effect on Mediation Efforts (Nortel Networks Bankruptcy, Part Five)

By: Donald L Swanson Back in 2011, the Third Circuit Court of Appeals wrote a scathing opinion about the behavior of the disputing parties in the Nortel Networks bankruptcy case. The Third Circuit's opinion is published at In re Nortel Networks, Inc., 669 F.3d 128 (3rd Cir. 2011). However, the Third Circuit's judicial scolding has had... Continue Reading →

A Suggestion: Shut-Off-The-Spigot Plus Mandatory-Mediation (the Nortel Networks Bankruptcy, Part Four)

By: Donald L Swanson First of all, I know this suggestion will never happen. But it should. This suggestion, if implemented long ago, would have dramatically increased odds of a mediated settlement in the Nortel bankruptcy.  Such a settlement would have stopped the excessively-expensive and excessively-long-running legal battles in the Nortel Networks bankruptcy (Case No.... Continue Reading →

Intransigence = Mediation Failures (the Nortel Networks Bankruptcy, Part Three)

By Donald L. Swanson Have you ever noticed that synonyms for "intransigence" often come from farm animals: e.g., bullheadedness, doggedness, pigheadedness, stubborn as a mule? Such qualities aren't very helpful on a farm.  But they are killers in mediation. "Intransigence" describes the four-time failures of the Nortel Networks mediation efforts to reach a funds allocation and... Continue Reading →

A 2015 Judicial Scolding for “Self-Serving” and “Narcissistic” Mediation Positions (the Nortel Networks Bankruptcy, Part Two)

By: Donald L. Swanson The primary issue in the Nortel Networks bankruptcy is this: How should the remainder of a $7.3 billion fund be allocated among creditors?  $2 billion or-so of this fund has already been used to pay professional fees in the fight. The U.S. portion of the Nortel Networks case is in the... Continue Reading →

The Monstrous Costs of Mediation Failures (the Nortel Networks Bankruptcy, Part One)

By Donald L. Swanson A sale in bankruptcy of assets owned by Nortel Networks Inc. results in a $7.3 billion (yes, that's $7,300,000,000) pot of gold for creditors. Guess what: creditors can't agree on how to divide the pot. So what do creditors do instead? They spend $2 billion from the pot of gold on... Continue Reading →

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