Nortel, Genband fighting over $37M

Nortel Networks is clashing with Genband over the purchase price of one of its business units, claiming Genband isn't paying what it had promised.

Texas-based Genband in May closed on its purchase of Nortel's Carrier VoIP Applications Solutions business, or CVAS, which had a sizable presence in Research Triangle Park. But in court papers filed this week, Nortel (OTC:NRTLQ.PK) says Genband is trying to knock off $37 million off of the $179.5 million total purchase price "by claiming a purchase price adjustment that ignores the clear terms of the sale agreement." In a court filing, Genband says it is seeking to resolve the matter through arbitration.

Bankruptcy reorganization

Toronto-based Nortel has been selling pieces of itself as part of a bankruptcy reorganization. Last December, privately held Genband emerged as the winning bidder for Nortel's CVAS business. The more than 500 workers for the former Nortel business unit now work for Genband, and Genband's RTP presence is now the company's largest single location.