Nortel gets OK to sell fund investment interests for $22.77 million

By Lisa Kerner

Charlotte, N.C., Nov. 23 - Nortel Networks Inc. received court approval for the $22.77 million private sale of limited partner membership interests in several venture capital fund investments to CS Strategic Partners IV VC Holdings, LP and Amberbrook V, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the purchase price will include any capital contributions made by the sellers after a specified account balance date and before the effective date of the sale, less the amount of any distributions made in that timeframe and less the purchase price having been allocated by the buyers to any LP interests related to any fund excluded from the transaction because a right of first refusal has been exercised.

The total portion of the purchase price allocated to funds where rights of first refusal may be exercised is $5.84 million.

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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