The beleaguered Canadian equipment supplier Nortel Networks has obtained an order from Ontario’s Supreme Court that extends its creditor protection until the end of June.
In a statement on Friday, Nortel Networks Corporation said that its subsidiary…
The beleaguered Canadian equipment supplier Nortel Networks has obtained an order from Ontario’s Supreme Court that extends its creditor protection until the end of June.
In a statement on Friday, Nortel Networks Corporation said that its subsidiary Nortel Networks and its other Canadian subsidiaries had previously filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), and that this had now been extended until 30 June.
It said that the purpose of this extension was to provide stability to the Nortel companies to continue divesting assets and restructuring, as well as developing a plan of arrangement under the CCAA.
Nortel first filed for Chapter 11 protection in January 2009. It announced in June 2009 that it was no longer planning to leave bankruptcy protection and began selling its assets.
Nortel also announced in December 2010 that it was selling “substantially all of the assets” of Guangdong Nortel Telecommunication Equipment (GDNT), a JV in which Nortel Networks and Nortel China had a 62% stake to the Swedish vendor Ericsson.
