Nortel Networks has filed papers in Bankruptcy Court alleging that Genband is refusing to pay the price they agreed upon for Nortel's Carrier VoIP and Applications Solutions division. Nortel says Genband is offering $36.6 million less than the $179.5 million price for the unit. Nortel, which filed for Chapter 11 protection in 2009, has raised about $3.2 billion for creditors through asset sales.
Nortel has chosen Genband as its stalking horse to sell its Carrier VoIP and Applications Solutions unit for $282 million in the vendor's continuing liquidation process. If it wins an auction for the assets, Genband -- a producer of IP media, session border and fixed mobile convergence security systems -- would buy a business with 2,500 employees that shipped more than 118 million VoIP and multimedia ports.
Genband, which acquired NextPoint Networks in September, has forged deals with NextPoint customers General Telecom, Verscom Solutions and VoIP Logic. The deal opens the door for these companies to sell and service products from Genband's existing portfolio.