THE NORTEL MEDIATION

2/2/13-

As of January 24, 2013, The Hon. Warren K. Winkler, the Chief Justice of Ontario, announced that the Nortel Mediation has concluded without an agreement.  Chief Justice Winkler determined that the mediation efforts were no longer worthwhile.

1/3/13-

The following are excerpts from the mediator’s page regarding the status of The Nortel Mediation:

“In June 2011, Justice Geoffrey B. Morawetz of the Ontario Superior Court of Justice and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Delaware, ordered all parties to the bankruptcy proceedings of Nortel Networks Corporation to seek mediation while they prepare their decisions on motions seeking the allocation of Nortel’s assets, heard earlier.  The Honourable Warren K. Winkler, the Chief Justice of Ontario, was appointed mediator. . . . Chief Justice Warren K. Winkler, the mediator, has scheduled an all-party mediation session to be held in Toronto for the week of January 14 to 18, 2013. Representatives from the major stakeholder groups, as well as their respective counsel and advisors have been asked to attend. The mediator has asked each stakeholder group to have personnel present with the appropriate authority to conduct settlement negotiations.”

Additional updates on the Nortel Mediation can be found at http://www.nortelmediation.com/index.html.

HOSTESS BRANDS, INC. LIQUIDATION

1/3/13-

On Friday, December 21, 2012, an investment banker for Hostess Brands, Inc. told the bankruptcy court that it was narrowing down bids received from potential purchasers for its brands.  A potential buyer had emerged for the Hostess brands and Dolly Madison cakes, and a viable bid was made for the Drakes cakes brand, which included that brand’s plant in New Jersey. 

In court last week, “Hostess said it expects to file binding ‘stalking horse’ bids for many of its brands in January, followed by a four-week auction process to allow competing bids. Sale closings for many brands could come as soon as mid-March.”  An August 2012 valuation report filed with the bankruptcy court estimated Hostess’ liquidation value at about $522 million, while another consultant estimated that the Twinkies and Wonder Bread brands could sell for as much as $1 billion.

Sources:

Hostess’ brands likely to be split up, The Columbus Dispatch, Sec. D4, Dec. 23, 2012.

Karen Robinson, Hostess started contingency plans for liquidation long before strike, The Buffalo News, http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20130103/BUSINESS/130109823/1005, Jan. 3, 2013.