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Nortel unsecured creditor class rejects plan; 17 other classes OK it
By Caroline Salls
Pittsburgh, Jan. 20 – Nortel Networks Inc.’s first amended plan of reorganization was rejected by the Nortel Networks Inc./Nortel Networks Capital Corp. claims class but was accepted by the 17 other voting classes, according to a report filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.
Just 46.41% in number of the Nortel Networks Inc./Nortel Networks Capital Corp. general unsecured creditors voted to accept the plan, although the plan was accepted by 84.16% in amount of those claims.
The class is deemed to have rejected the plan because less than two-thirds of voting creditors in the class approved it.
Classes that voted to accept the plan included the Nortel Networks Inc./Nortel Networks Capital Corp. crossover bond and EDC class, Nortel Networks Inc./Nortel Networks Capital Corp. convenience class, Nortel Networks (CALA) Inc. general unsecured class and convenience class, Nortel Altsystems Inc. general unsecured class, Nortel Altsystems International Inc. general unsecured class and XROS, Inc. general unsecured claims.
Other classes that accepted the plan included the Sonoma Systems general unsecured class, Qtera Corp. general unsecured class, Coretek, Inc. general unsecured class, Nortel Networks Applications Management Solutions Inc. general unsecured class and Nortel Networks Optical Components Inc. general unsecured class.
In addition, the plan was accepted by the Nortel Networks HPOCS Inc. general unsecured class, Architel Systems (U.S.) Corp. general unsecured class, Nortel Networks International Inc. unsecured class, Northern Telecom International Inc. general unsecured class and Nortel Networks Cable Solutions Inc. general unsecured class.
The plan confirmation hearing is scheduled for Jan. 24.
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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