Courts OK Genband's request for Nortel CVAS price reduction

Bankrupt Canadian telephone equipment maker Nortel has been granted permission to reduce the price of its Carrier VoIP and Application Solutions (CVAS) business, which it sold to Genband almost 17 months ago, by $25 million.

Genband paid $182.5 million for the assets of the business into an escrow account in May, after challenging the price formula that was used.

Canadian and U.S. judges overseeing the liquidation of Nortel agreed to allow the reduction to $157.7 million.

"These resolutions move the matter toward the ultimate resolution of the case," U.S. Bankruptcy Judge Kevin Gross said in Wilmington, Delaware. The price adjustment was also approved by Ontario Superior Court Judge Geoffrey Morawetz in Toronto.

For more:
- see this Bloomberg article

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