Nortel Networks Gets Stay Of Proceedings Under CCAA For More Restructuring Time
Insolvent Nortel Networks Corp. has been granted a stay of proceedings until July under court surpervised creditor protection to allow the company to continue with its restructuring activities. The now defunct company said Friday that the Ontario Superior Court of Justice has granted Nortel and its subsidiaries an extension under the Companies' Creditors Arrangement Act until July 31, CanadianBusiness.com reported on a Canadian Press story. Nortel's court protection has been extended several times. Since Nortel declared bankruptcy in early 2009, the company has sold US$3.2 billion of operating units — bringing the total value of the company's selloff to US$7.7 billion — one of the biggest asset sales in Canadian history. Nortel, which once employed 95,000 people around the world and was worth nearly $300 billion, filed for bankruptcy protection in the U.S. and Canada in early 2009. Ten years ago, at its height, Nortel was among the world's most advanced developers of telecom equipment and accounted for a third of the value of all companies listed on the Toronto Stock Exchange. But the company was felled by changing market conditions, economic upheaval and an accounting scandal that devastated its stock price. Read more.