British Lawyers And Accountants Quickly Burning Through Nortel Assets

British Lawyers And Accountants Quickly Burning Through Nortel Assets by Shawn McCoy, InsideSources

Mediation remains unresolved more than a month after talks first resumed in the seven-year-long battle over Nortel’s $7.3 billion in remaining assets. Legal fees have already consumed about a quarter of those assets.

New progress reports, reviewed by InsideSources, reveal that the British lawyers and accountants representing creditors to the European, Middle East, and African (EMEA) operating unit of Nortel, have been paid far more than their American and Canadian counterparties. This comes despite the EMEA group having a much smaller claim on Nortel’s assets.

As InsideSources has previously reported, this same group appears to be serving as holdouts in mediation talks and potentially pushing the...