Calgary Herald: Nortel started the bankruptcy process with more than $2 billion in cash, the lion’s share of which went to lawyers, accountants, consultants and other professionals who represented Nortel and the myriad other players in this legal drama. The professionals were paid upfront, 100 cents on the dollar.
“There were far too many lawyers in court both in Toronto and Delaware,” former Ontario Superior Court judge Frank Newbould wrote in a decision last year, “That situation breeds disrespect for the legal system in general and particularly so in a case in which thousands of pensioners and disability claimants have had to wait for far too long for this proceeding to end.”
Ernst & Young, the consultants in charge of Nortel’s nine-year long bankruptcy proceedings, began distributing cheques to approved creditors a year ago this month. Since then, according to a recent E&Y update, cheques totalling $4.1 billion have gone to more than 15,000 creditors representing former Nortel employees, suppliers, lenders, pensioners and survivors. (All figures U.S.).
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