Nortel Networks: Google subsidiary named stalking horse in proposed $900 million patent sale

By Lisa Kerner

Charlotte, N.C., May 2 - Nortel Networks Corp.'s primary subsidiary Nortel Networks Ltd. and other subsidiaries including Nortel Networks Inc. had a stalking horse asset sale agreement with Ranger Inc., a Google Inc. subsidiary, approved by the U.S. Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice, according to a Nortel news release.

The courts approved bidding procedures for the sale.

Qualified bids are due June 13 and an auction, if necessary, will be held on June 20.

The sale requires approval of the U.S. and Canadian courts.

As previously reported, Nortel will pay Google a $25 million break-up fee and reimburse up to $4 million of related expenses if Google is not the high bidder.

Nortel, a Brampton, Ont.-based manufacturer and supplier of telecommunications networking equipment, filed for bankruptcy on Jan. 14, 2009. Its Chapter 11 case number is 09-10138.

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