Google subsidiary enters into US$900 million stalking horse purchase agreement to acquire remaining patent assets of Nortel

Nortel Networks and its affiliated corporations have been subject to various international insolvency cases since 2009, with the principal filings in Canada (CCAA) and the United States (Chapter 11). In these cases, Nortel has been disposing of assets relating to its different business units. Nortel's residual patent assets are its largest remaining assets.

At the conclusion of an extensive solicitation process, Nortel Networks and its principal operating subsidiaries entered into a stalking horse purchase agreement with Ranger Inc. on April 4, 2011 to sell the remaining patent assets of Nortel to Ranger. On May 2, 2011, the Ontario Superior Court of Justice and the U.S. Bankruptcy Court for the District of Delaware approved Bidding Procedures, permitting other qualified parties to submit superior bids, and approved payment of a breakup fee and expense reimbursement by Nortel to Ranger in certain circumstances, should another bid be successful. The Bidding Procedures will be implemented, culminating in an auction on June 20, 2011 if other qualified bids are submitted. Following completion of the Bidding Procedures, the successful bid will be subject to the approval by the Ontario and U.S. Courts.