Nortel given thumbs up to pay $7.3bn to creditors
Judges in Canada and US approve repayment package more than eight years after Nortel first filed for bankruptcy
An end to the Nortel Networks bankruptcy saga appears to be on the horizon after the troubled firm won approval to start distributing $7.3 billion to creditors.
Judges in both the US and Canada gave Nortel permission to begin dishing out funds it raised from selling business units and patents after it declared bankruptcy in 2009.
According to Reuters, Judge Frank Newbould, representing the Superior Court of Justice in Toronto, and Judge Kevin Gross, of the US Bankruptcy Court in Delaware, rubber-stamped Nortel’s plan to pay back creditors.
Nortel was once a key Canadian technology vendor with a market capitalisation of around $250 billion, but filed for Chapter 11 protection in its home country and the US, selling off a number of business units after it failed to restructure its assets.