Nortel Networks was once the largest telecommunication equipment company in North America, but since it filed for bankruptcy in 2009 it has earned a new label: one of the world's most complicated legal proceedings, Reuters reported. Bondholders, suppliers, governments and former employees from around the globe hold $20 billion in claims based on different insolvency laws and are competing for Nortel's last remaining asset - $9 billion in cash.

Axtel SAB plunged the most in three weeks after a creditor group said it would reject the company’s restructuring offer. The stock of Mexico’s second-largest land-line phone carrier fell 3.9 percent to 3.19 pesos at 1:59 p.m. in Mexico City Friday. Bondholders controlling 40 percent of Axtel’s dollar notes will reject the Mexican phone company’s restructuring offer, Bloomberg News reported yesterday, citing a letter obtained from two investors in a creditor group.

Global regulators gave banks four more years and greater flexibility on Sunday to build up cash buffers so they can use some of their reserves to help struggling economies grow. The pull-back from a draconian earlier draft of new global bank liquidity rule to help prevent another financial crisis went further than banks had expected by allowing them a broader range of eligible assets.

Mexican glassmaker Vitro said on Monday it had begun a legal process to recover up to $1.59 billion in damages from hedge funds who sued the company in Mexico but lost on appeal, Reuters reported. Vitro went through a $3.4 billion bankruptcy reorganization in Mexico, but some creditors strenuously opposed that plan, and they have been fighting in U.S. courts. Vitro said in a statement that it could collect damages from a trust that has been holding new bonds and payments that correspond to investors who opposed the Mexican restructuring.

PT Berlian Laju Tanker Tbk creditors, with a combined total of about $125.5 million in claims, filed an involuntary Chapter 11 petition against the Indonesian ship operator, Bloomberg reported. Gramercy Distressed Opportunity Fund II, Gramercy Distressed Opportunity Fund, and Gramercy Emerging Markets Fund, all located in Greenwich, Connecticut, filed today in U.S. Bankruptcy Court in Manhattan, according to court papers.

US and UK regulators will unveil the first cross-border plans to deal with failing global banks on Monday, outlining proposals to force shareholders and creditors on both sides of the Atlantic to take losses and to ensure sufficient capital exists in the banks’ headquarters to protect taxpayers. Writing in the Financial Times, Martin Gruenberg, chairman of the US Federal Deposit Insurance Corporation, and Paul Tucker, deputy governor of the Bank of England, say this represents the first concrete steps to end the “too big to fail” problem of large international banks.

Newfoundland and Labrador called on the Harper government Friday to change corporate bankruptcy laws after it lost a major environmental appeal before the Supreme Court of Canada, the Canadian Press reported. The province failed in its bid to force the newsprint giant, formerly known as AbitibiBowater Inc., to pay for an environmental cleanup, as the Supreme Court sided with the company in a 7-2 ruling. The province's attorney general called for legislative changes after Friday's ruling, which acknowledged the so-called "polluter pay" principle.

China's largest maker of auto parts won a politically sensitive auction for A123 Systems Inc, a bankrupt maker of batteries for electric cars that was funded partly with U.S. government money, A123's investment banker said on Saturday, Reuters reported. Timothy Pohl of Lazard Freres said Wanxiang Group Corp's bid of about $260 million topped a joint bid from Johnson Controls Inc of Milwaukee and Japan's NEC Corp for the maker of lithium-ion batteries. Siemens AG of Germany had also qualified to bid, according to two people familiar with the auction, who asked not to be identified.

A U.S. judge ordered that 10 units of Mexican glassmaker Vitro SAB de CV be put into U.S. bankruptcy and he found that several of them had taken secret steps to prevent creditors from collecting money owed to them, Reuters reported. Several U.S. hedge funds led by Aurelius Capital Management and Elliott International hold defaulted notes issued by the subsidiaries and sought to put the units into bankruptcy.

Canadian Pacific Railway will eliminate some 4,500 employee and contractor positions by 2016, the new chief executive of Canada’s second largest railway announced Tuesday, The Washington Post reported on an Associated Press story. Chief executive Hunter Harrison said they have already made progress and expect 1,700 positions to be eliminated by year end. CP’s total workforce is 19,500, which includes employees and contractors. The Calgary, Alberta-based company said the reductions will be achieved through job cuts, attrition and fewer contractors as part of its restructuring plan.