Nortel: seven years, US$7.3 billion in escrow in New York and still not a single creditor paid. The long, drawn-out death of this global telecoms and data networking company lingers on, with a tidal wave of new appeals following on from dual-US and Canadian court decisions in May 2015. In Europe, an English court has granted Nortel’s UK operations the right to make distributions to unsecured, non-preferential creditors and to declare dividends – but the company’s UK-based administrators have not been able to do so yet and, at the time of writing, the court-ordered deadline had been postponed to September. GRR attempts to examine what went so badly wrong as to create a scenario that one source described as nothing short of a “disaster”.
In this edition of GRR magazine you can also find an interview with Judge James Peck, the US bankruptcy judge who oversaw the liquidation of Lehman Brothers in the US Bankruptcy Court for the Southern District of New York, alongside hundreds of related claims. With just under three years of judging experience under his belt, he managed the biggest global bankruptcy in history, still finding time to draft a landmark protocol for multilateral cooperation between representatives in 16 jurisdictions where the Lehman bankruptcy was playing out. Now a senior of counsel at Morrison & Foerster, Judge Peck reflects on whether some of the lessons learned from Lehman, on how to manage the restructuring of systemically important financial institutions, have resulted in practical changes – or whether more change needs to come.
Judge Peck isn’t the only justice profiled in this issue. Kannan Ramesh SC, who was appointed judicial commissioner at Singapore’s Supreme Court last year, reflects on the city state’s forthcoming adoption of the UNCITRAL Model Law and what impact the Trans-Pacific Partnership might have on cross-border cooperation. Elsewhere in the magazine, partners Pedro Jimenez and Amanda Parra Criste of Jones Day in Miami write about Venezuela’s economic woes and suggest ways out via restructuring – in the US.
We also have our other regular features: our sovereign debt column in which partner Andrew Shutter from Cleary Gottlieb Steen & Hamilton discusses single vote cross-series collective action clauses, and our column on asset recovery. In this outing of the asset recovery column, Edward Davis, founding member of Miami’s Astigarraga & Davis, and fellow partner Annette Escobar explain how recognition of foreign insolvency proceedings under the UNCITRAL Model Law can be a real boon to tracing assets internationally.
We also have a new regular column on all matters related to the EU, written by editorial board member and professor emeritus of international insolvency law at Leiden University in the Netherlands, Bob Wessels. His first Europe column focuses on the difficulties presented when dealing with multiple languages in cross-border insolvency proceedings in the EU.
In this magazine:
- Nortel: Death is not the end
- Judge James Peck
- Kannan Ramesh SC
- Restructuring on the rise for Venezuela
- 40 Under 40 Survey: Runners Up
- Asset Recovery: Why fraudsters should fear cross-border insolvency
- Europe: What language in EU cross-border cases?
- Sovereign Debt: Single vote cross-series collective action clauses – a “how to” guide
- TMA Asia Pacific Conference – Singapore: Court-to-court protocol is the key to cross-border consensus
- TMA London Roundtable: Assessing the EU’s Single Resolution Mechanism
- Trade Association for Emerging Markets London Seminar: Investing in sovereign debt through arbitral awards
- EBS Law School, Weisbaden: International insolvency legislation – separated by a common language?