Telecom equipment maker Nortel Networks Corp., which is in the midst of selling off divisions as it works through Canadian bankruptcy, said its loss expanded in the second quarter as revenue fell 86 percent, Bloomberg Businessweek reported. The net loss in the three months to June 30 came to $1.5 billion, or $3.02 per share, compared with a loss of $274 million, or 55 cents per share, a year ago. The loss included reorganization costs of $1.4 billion. Revenue came in at $145 million, compared to $1.01 billion a year ago.

AbitibiBowater Inc. is seeking to quickly strike a deal in connection with a proposed bankruptcy-exit financing package of up to $750 million, Dow Jones Daily Bankruptcy Review reported. The pulp-and-paper company is asking the U.S. Bankruptcy Court in Wilmington, Del., to schedule an Aug. 25 hearing at which it would consider allowing AbitibiBowater to enter into agreements with Barclays Capital Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., which have agreed to manage a $750 million notes offering.

Bankruptcy decisions made by US courts could be enforceable in England and Wales after an important court ruling that lawyers say could have implications for former UK clients of collapsed bank Lehman Brothers and those of the fraudster Bernard Madoff, the Financial Times reported. The Court of Appeal recently ruled in the case of a trust created by Eurofinance SA that English courts could recognise overseas insolvency proceedings made by US courts. Previously US bankruptcy judgments were not enforceable in the UK unless a separate UK action had been started on the same grounds.

A U.S. federal magistrate has shielded Nortel Networks Corp. from action by U.K. pension regulators who fear the troubled company will walk away from obligations to 40,000 retirees, leaving a $3.4 billion funding shortfall, Dow Jones Daily Bankruptcy Review reported. Recommendations issued Thursday by U.S. Magistrate Judge Mary Pat Thynge relieve the company of worry that the U.K.'s Pension Regulator will intrude as Nortel negotiates a bankruptcy exit plan, at least until a federal district judge reviews and acts on Thynge's recommendations.

The trial of a lawsuit by Lyondell Chemical Co. creditors against billionaire Len Blavatnik that claims a 2007 merger drove the company into bankruptcy is set to begin in New York next month, Bloomberg reported. Summonses were filed yesterday in U.S. Bankruptcy Court in Manhattan listing Blavatnik and 41 other people and companies that allegedly played a role in Lyondell’s takeover by Luxembourg-based Basell AF SCA. A pretrial conference is set for Sept. 13.

Dubai International Capital, the private equity arm of the Gulf Arab emirate, said it will focus on bringing German aluminium maker Almatis out of bankruptcy after a long-running battle with a dissident lender ended, Reuters Africa reported. Oaktree Capital Management LP withdrew its opposition to DIC's plan to retain control of the bankrupt firm after a settlement offer was leaked. Oaktree and Dubai have been battling over the best way to refinance Almatis, which filed for bankruptcy in the United States with more than $1 billion in debt, for the past year.

The main unit of Mexicana on Tuesday warned it could face liquidation unless Mexico's largest airline was allowed to keep operating aircraft in the wake of its bankruptcy filing, Dow Jones reported. Compania Mexicana de Aviacion filed for bankruptcy protection in the U.S. and Mexico on Monday after failing to reach a new deal with its unions to cut costs after a period of rapid expansion. The airline continued to operate most flights Tuesday, but said in court filings that aircraft leasing companies and owners were taking steps to repossess planes.

Oaktree Capital Management LP is willing to give up its fight for control of Almatis BV, a bankrupt aluminum maker, for full payment of its loans and an end to threatened legal action, according to a "confidential" court filing on Monday, Reuters reported. In a letter dated July 27 to an Almatis lawyer, Oaktree's lawyer outlined six conditions for ending Oaktree's battle with Dubai International Capital LLC over the European aluminum company.

A U.K. Court of Appeal ruled in favor of hedge funds that maintained their client money, held in the main European arm of Lehman Brothers Holdings Inc., wasn't properly protected when the investment bank collapsed, The Wall Street Journal reported. The development is the latest aspect of the complex effort to return cash and other assets to Lehman's clients after the bank failed in September 2008. Lehman's bankruptcy, with more than $600 billion in total assets, ranks as the largest U.S. corporate failure.

A Kazakhstan bank's bid to use the U.S. bankruptcy court to halt an overseas legal proceeding could drag the court into disputes in which the U.S. itself has little at stake, Dow Jones Daily Bankruptcy Review reported. Kazakhstan's JSC BTA Bank says the U.S. bankruptcy court's decision to grant it Chapter 15 protection in the U.S. after it underwent restructuring in its home country last year extended a key benefit of U.S. bankruptcy law: the automatic stay that halts legal action against a debtor company.