Asset Sales In The CCAA

Nortel Networks ("Nortel") brought a motion seeking approval of the sale of various Nortel assets to Nokia Siemens ("Asset Sale Agreement"), and for approval of a Sale Agreement and Bidding Procedures, advanced by Nortel for the purpose of conducting a "stalking horse" bidding process in respect of its Code Division Multiple Access ("CDMA") and Long-Term Evolution Access ("LTE") assets. As of the date of the motion, Nortel had yet to propose a formal plan of compromise or arrangement.

The threshold issue in raised on this motion was whether the CCAA affords the court the jurisdiction to approve a sales process in the absence of a formal plan and a creditor vote. If the question was answered in the affirmative, the secondary issue was whether the court should, in the particular case, grant the motion to sell the assets of Nortel in the manner proposed.