Nortel Networks Corp.'s European units are pressing more than $10 billion worth of claims against their Canadian parent, including a claim for $4.6 billion worth of damages for alleged mismanagement under French law, court documents say, Dow Jones Daily Bankruptcy Review reported. The intercompany claims were listed in a report filed publicly Thursday by Ernst & Young, monitor of Nortel's Canadian insolvency proceeding. The demands for payment from Nortel's European units are enough to double the size of the claims filed in the Canadian case, the report, filed with the U.S.

Nortel Networks Corp. is taking its multi-billion-dollar global intercompany cash fight public in June, the lead bankruptcy lawyer for the liquidating telecommunications company said Tuesday, Dow Jones Daily Bankruptcy Review reported. Behind-the-scenes efforts have failed to resolve disputes over which part of Nortel gets how much of the nearly $4 billion being raised in the breakup of the company, so Nortel is turning to the courts in Canada and the U.S., said the attorney, James Bromley, who is with Cleary Gottlieb Steen & Hamilton.

A fund controlled by billionaire investor Len Blavatnik has been asked to return EUR100 million ($145.8 million) to the bankruptcy estate of chemical giant LyondellBasell Industries, which emerged from Chapter 11 protection last year but left a trustee to file lawsuits to recover funds for the company's unsecured creditors, Dow Jones Daily Bankruptcy Review reported. In a lawsuit filed Friday with the U.S.

Quebec-based forestry company Tembec Inc. is liquidating its U.S. subsidiary, nearly four years after shuttering its Louisiana coated paper mill, The Canadian Press reported. Tembec USA, a division of the company that no longer has any operating assets, has applied to a U.S. bankruptcy court for Chapter 7 protection, Tembec announced Monday. Unlike Chapter 11, this section is designed for companies seeking liquidation rather than restructuring. Tembec said its U.S. division has US$81 million in debt and assets worth $1 million.

Vitro SAB’s massive bankruptcy case, which spans two countries and has played out in at least six courts, has one simple purpose, say the company’s bondholders: keep Mexico’s Sada family at the helm of the glass maker, the Bankruptcy Beat blog reported. The reorganization plan that Vitro is pursuing in Mexico would force bondholders to accept a $650 million loss on their investment while leaving the company’s stockholders, including the Sadas, virtually untouched, said John Cunningham, an attorney for the bondholders, at a hearing held Wednesday in the U.S.

A recent court decision by the Ontario Court of Appeal to award pensioners from Indalex Ltd. secured creditor status in a CCAA restructuring has tongues wagging in financing circles on Bay Street, the Financial Post reported. Newton Glassman, founder and managing partner at Catalyst Capital Group Inc., is among the more vocal. Catalyst, the leading lender to distressed companies in Canada, is preparing to seek intervenor status when Indalex seeks leave to appeal to the Supreme Court of Canada. If the high court grants an audience, Catalyst wants a seat. Mr.

On Monday, the Supreme Court refused Scanwood Canada’s pleas for more time for protection from its creditors and placed it in receivership. Scanwood made nearly one million chests of drawers every year for IKEA, its only customer. The recession hurt sales, and the business owed nearly $24 million. The company had been under creditor protection for two months. A bid from a new group of investors fell through and unionized workers refused to make further concessions.

The mediation process related to the allocation of proceeds from the sale of Nortel Networks Corp.'s various assets has ended "without resolution," potentially delaying distributions to claimholders, Nortel said Wednesday, Dow Jones Daily Bankruptcy Review reported. The Canadian company, which filed for Chapter 11 protection in 2009 and has been shedding its assets in bankruptcy court, said delays in resolving allocation and intercompany claims matters "could be significant." The former telecommunications giant didn't elaborate on the latest developments in the mediation process.

The world's biggest economies hope to make progress this week on a plan to identify countries that put the global economy at risk, while China warned against any moves that would curb its red-hot growth, Reuters reported. The meeting of the Group of 20 rich and emerging-market nations comes at a time of conflicting economic signals. Just as signs of a strengthening recovery in some rich countries have pushed their central banks to begin to pull back on economic supports, world markets have been rocked by fears that high oil prices will put the brakes on global growth.

Mexican glass maker Vitro SAB said Monday that it won an appeal at a Mexican court and can continue with its prepackaged debt restructuring under the local equivalent of Chapter 11, Dow Jones Daily Bankruptcy Review reported. Vitro, which faces creditor opposition to its proposed restructuring, suffered a setback in January when a separate court ruled against the plan to vote $1.9 billion in intercompany debt as a way of securing sufficient creditor support for the pre-packaged restructuring proposal.