Nortel Bankruptcy News: $28B Worth of Claims Filed, Global IP Deal, Behind the Scenes

An interesting tidbit that I was remiss in highlighting in the Monitor’s 25th report is that 917 claims worth C$28-billion were filed against Nortel (NRTLQ.PK) and four other business units (Nortel Networks Global Corp., Nortel Networks International Corp., Nortel Networks Ltd. and Nortel Networks Technology Corp.) by the claims bar date of Sept. 30. Another 13 claims worth C$1.4 billion have been filed since the claim bar date.

(Note: These claims include those filed against more than one of the applicants, as well as “placeholder” claims for nominal amounts or amounts subject to further adjustment).

Nortel’s Patent Analysis Deal with Global IP

With 3,500 patents still in its possession, Nortel has hired an intellectual property consulting company, Global IP, to do an analysis and valuation of its portfolio.

In a court filing, Nortel said it hired Global IP after submitting requests for proposals to nine consulting firm based on the belief it requires

the services of a capable and experienced intellectual property consulting firm because, among other reasons, the valuation and monetization of the Residual Patent Portfolio cannot be effectuated without such services, and such efforts are important to the Debtors’ success in their Chapter 11 cases both individually and as part of Nortel’s global restructuring efforts.

In what could be a three-phase project, Global IP will initially perform a preliminary market analysis, identify key assets within the patent portfolio, and provide insight into the strength of each patent. This phase will cost $350,000, plus expenses.

If implemented, the second phase will involve the development of business cases for each key patent. The third phase will involve a valuation analysis of the top patents within the portfolio, the creation of strategic alternatives for “exploiting” (translation: getting as much money as possible for them), as well as a strategic recommendation on how to maximize the value of the entire patent portfolio and IP business.

Behind the Scenes of Nortel’s Bankruptcy Decision

The Ottawa Citizen’s James Bagnell, who covers Nortel as well as any reporter, has a fascinating story looking at what went on behind the scenes before Nortel decided to file for bankruptcy protection last January.

The decision to pull the trigger just before a $107-million interest payment had to paid does makes you wonder what could have transpired if Nortel had been able to sell its Metro Ethernet Network (MEN) business last September. Nortel was seeking $1-billion to $2-billion for MEN but no one stepped up with a bid after the global credit crunch emerged.

Comments

[Phillip Jain:]

Amazing! Did NT deceive investors on its liabilities?

Nov 03 02:07 PM