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Remains of Nortel given extension until July
17 April 2012
Canadian court extends Nortel Networks life under court-supervised creditor protection
The remains of Nortel will stay in existence until at least the end of July 2012, more than three years after the company filed for bankruptcy protection.
A Canadian court has further extended the stay of proceedings granted to Nortel under court-supervised creditor protection, thereby enabling the company to go on with its restructuring activities.
Nortel filed for bankruptcy protection in the US and Canada in 2009, and has since sold $3.2 billion of its operating units and intellectual property. The insolvent company had about 95,000 employees around the world at its height and formed one-third of the value of firms listed on the Toronto Stock Exchange.
The Ontario Superior Court of Justice has given the company until July 31 to continue with its efforts towards coming up with a plan of arrangement under Canadian bankruptcy legislation.
Three former executives of Nortel — ex-CEO Frank Dunn, former CFO Douglas Beatty and ex-controller Michael Gollogly — are on trial in Canada charged with accounting fraud. They deny the allegations. All three were dismissed by the company in 2004. GTB
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