Nortel bankruptcy proceedings

The Brattle Group was retained by counsel for a group of UK pension claimants to opine on allocation approaches and claims issues in Nortel’s bankruptcy proceedings. Brattle supported two testifying experts on analysis related to international transfer pricing and proceeds allocation. We developed an economically rational allocation methodology that, in the absence of an ex ante agreement among Nortel’s legal entities prior to its bankruptcy, reflected the financial and management realities of Nortel’s business operations. A Brattle expert testified on this methodology before both the Delaware Court of Bankruptcy in the U.S. and the Superior Court of Toronto in Canada. Our expert’s recommended pro rata allocation method, with some modifications, was accepted by the Canadian court as “doing what is just in the unique circumstances” of Nortel’s case, and by the U.S. court as “a fair and equitable mechanism.”