Nextel's bankrupt Latin American arm gained U.S. court approval on Thursday of a plan to exit Chapter 11 bankruptcy under the control of bondholders including Aurelius Capital Management, the company's lawyer said, Reuters reported yesterday. NII Holdings, a telecom operator for the Nextel brand in Brazil, got approval for the contested $4.35 billion turnaround plan from Bankruptcy Judge Shelley Chapman, concluding a trial that began earlier this month, NII attorney Scott Greenberg said yesterday. The plan, which will cede control to Aurelius and other holders of $4.35 billion in bonds, is based on a series of settlements of complex legal disputes over the validity of inter-company transfers. While most creditors supported the deal, a bondholder subset known as the CapCo group called it a sweetheart deal for Aurelius that reduced CapCo's payout by $150 million — more than a third of its total recovery.
