Nortel in Negotiation of Stalking Horse Agreement to Sell Carrier VoIP and Application Solutions Business to GENBAND, Inc.

January 14, 2010

Cleary Gottlieb is representing Nortel Networks in a stalking horse sale agreement with GENBAND, Inc. for the sale of Nortel’s Carrier VoIP and Application Solutions (CVAS) business, including units in North America, the Caribbean, Latin America, Asia, Europe, the Middle East and Africa. The sale is subject to an auction process that allows other qualified bidders to submit higher or otherwise better offers, as well as final bankruptcy court approval.

Nortel has been a client of Cleary Gottlieb for more than 20 years. The firm is currently acting as U.S. bankruptcy counsel to Nortel and its affiliates in their U.S. Chapter 11 proceedings, which are closely coordinated with proceedings in Canada, the United Kingdom and France. The firm has represented Nortel in a number of recent transactions, including the sale of its CDMA business and LTE Access assets to Telefonaktiebolaget LM Ericsson, the sale of the Enterprise Solutions business to Avaya, Inc. and the sale of the Metro Ethernet Networks Business to Ciena Corporation through auctions conducted in accordance with the bankruptcy process.