Nortel asks court to cut $14.72 million of Telmar, Precision claims

By Caroline Salls

Pittsburgh, Jan. 4 - Nortel Networks, Inc. and Nortel Networks (CALA) Inc. filed a lawsuit against Telmar Network Technology, Inc., Precision Communication Services, Inc. and Precision Communication Services Corp. in connection with alleged breaches of contract and attempts by the defendants to withhold or control Nortel property, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The Nortel entities are also asking the court to disallow $14.72 million of claims filed by the defendants, some of which were increased and some of which the plaintiffs allege are redundant or duplicates.

According to the complaint, the plaintiffs provided switches, modules, circuits, and related repair services to Nortel and entered into repair agreements with various third parties to whom Nortel had sold products.

However, the Nortel entities are alleging that the defendants failed to pay for the goods and services provided.

Specifically, the Nortel entities said they are owed $2.18 million for the goods and services in question.

The plaintiffs are seeking damages, as well as the return of their property.

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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