Nortel Creditors Cry Foul

7:25 AM -- Creditors hoping to maximize their returns from the breakup of Nortel Networks Ltd. have filed a complaint about the process for the vendor's CDMA and LTE access assets auction that should start today, according to this Bloomberg report. (See NSN Picks at Nortel's Mobile Bones .)

Under bankruptcy protection rules, other qualified bidders have 30 days to make a better offer than the $650 million on the table from Nokia Networks . But some creditors believe the rules attached to the auction favor Nokia Siemens and could limit rival interest and stifle better offers. (See How NSN Is Funding Its Nortel Bid and Will Others Bid for Nortel's Wireless Assets? )

Prepare for a lengthy list of such complaints and objections as Nortel looks to sell its various limbs: With an initial deal in place for some of the mobile network technology, initial sale agreements are expected to be announced soon for the Enterprise business unit -- with Avaya Inc. the favorite to seal a $500 million deal -- and the Metro Ethernet Networks (MEN) division, which has a number of suitors and should attract offers of $750 million or more. (See Who's Waving Their Wad at Nortel’s MEN? and Selling Nortel's MEN.)

That still leaves other assets on the "For Sale" list that might attract some specialist buyers. (See Who's Dialing In for Nortel's VoIP Assets? )

Remember, though, that Nortel's management might yet have some Phoenix-like plans in the fire: Anyone fancy investing in a 5G incubator? (See Nortel Hangs On to Its LTE Smarts.)

— Ray Le Maistre, International News Editor, Light Reading

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