Canadian vendor Nortel Networks will have more time to restructure its business, after a Canadian court agreed to grant it an extension of creditor protection until the end of July.
In a statement, Nortel said that it had obtained an order from the…
Canadian vendor Nortel Networks will have more time to restructure its business, after a Canadian court agreed to grant it an extension of creditor protection until the end of July.
In a statement, Nortel said that it had obtained an order from the Ontario Superior Court of Justice that extended the stay of proceedings under the Companies’ Creditors Arrangement Act (CCAA) until 31 July. This gives it creditor protection while it restructures its assets.
“The purpose of the stay of proceedings is to provide stability to the Nortel companies to continue with their restructuring efforts and to continue to work toward the development of a plan of arrangement under CCAA,” Nortel said in a statement.
The order has already been extended multiple times by Nortel since it first filed for creditor protection in early 2009.
Nortel has since agreed to sell off large parts of its business, including its patent portfolio. It agreed to sell the majority of the patents in a US$4.5bn deal to a consortium of Apple, Ericsson, Microsoft, RIM and Sony.
