The U.S. Bankruptcy judge overseeing Verizon's challenge to Avaya's $915 million winning bid for Nortel's Enterprise Solution division threw out the challenge, eliminating one roadblock for the eventual closure of the deal. According to a Reuters report, Judge Kevin Gross found Verizon's claims that the deal would cause national security and military issues to be mainly economically motivated, therefore not warranting interference with Avaya's purchase of the unit.
Verizon, which argued that Avaya would discontinue its contracts after buying the unit, most likely will have to renegotiate the services contracts with Avaya, if Avaya's winning bid for the unit is accepted and meets regulatory approval.
For more:
- see the Reuters report here
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