360networks Sues Nortel To Recover $101.1 Million

The subsidiary and its creditor panel are seeking to recover funds that were transferred to Nortel within 90 days of 360networks' bankruptcy filing.

Vancouver-based 360networks Corp., the parent of 360networks (USA) filed for protection from creditors in both U.S. and Canadian courts in June 2001 after failing to meet scheduled debt payments.

It emerged from bankruptcy protection in November.

Under the terms of the Chapter 11 reorganization plan, unsecured creditors could receive roughly $81.5 million if the plaintiffs are successful in recovering the $101.1 million. The balance will go to 360networks, according to a press release issued by the committee.

Nortel and attorneys for the creditors committee didn't return calls seeking comment.

New York Stock Exchange listed Nortel shares closed Wednesday at $1.99, down 9 cents, or 4.3 percent.

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