While it would appear that Nortel's restructuring saga is over, a Canadian federal court is giving the troubled company another extension to pay off its debts.
The troubled company, which filed for bankruptcy protection in January 2009, will have until July 22 to develop a plan to pay of its debts. Although it has been able to raise more than $3 billion by selling of core assets, it still has $4.5 billion in long-term debt and also has to pay back billions to related suppliers, pensioners and to the Texas Stadium.
According to Nortel's court monitor Ernst & Young, Nortel holds about $251.2 million, with $56.8 million being restricted. It's likely the company will dip into those funds to pay around $97 million to employees that stick around to help it shut down the company.
- xChange has this article
Nortel seeks another bankruptcy extension
Ciena becomes victor in fight for Nortel's MEN