A mediator overseeing creditor negotiations in Nortel Networks' bankruptcy said on Tuesday he is extending talks over how to distribute about $9 billion in cash at the fallen telecom, Reuters reported. Ontario Chief Justice Warren Winkler said in a statement the mediation, scheduled to end at noon on Tuesday, had been extended, but did not say for how long. A spokesman for the mediator declined to give detail on the length of the extension.

The former chief executive of bankrupt Nortel Networks and two former senior executives were found not guilty Monday of falsifying financial reports in what prosecutors said was a scheme to report profits and gain bonuses, the Associated Press reported. Ontario Superior Court Justice Frank Marrocco dismissed all charges against former chief executive Frank Dunn, chief financial officer Douglas Beatty and corporate controller Michael Gollogly. The verdicts come four years to the day after Nortel sought bankruptcy protection and began liquidating.

Nortel Networks was once the largest telecommunication equipment company in North America, but since it filed for bankruptcy in 2009 it has earned a new label: one of the world's most complicated legal proceedings, Reuters reported. Bondholders, suppliers, governments and former employees from around the globe hold $20 billion in claims based on different insolvency laws and are competing for Nortel's last remaining asset - $9 billion in cash.

Newfoundland and Labrador called on the Harper government Friday to change corporate bankruptcy laws after it lost a major environmental appeal before the Supreme Court of Canada, the Canadian Press reported. The province failed in its bid to force the newsprint giant, formerly known as AbitibiBowater Inc., to pay for an environmental cleanup, as the Supreme Court sided with the company in a 7-2 ruling. The province's attorney general called for legislative changes after Friday's ruling, which acknowledged the so-called "polluter pay" principle.

Canadian Pacific Railway will eliminate some 4,500 employee and contractor positions by 2016, the new chief executive of Canada’s second largest railway announced Tuesday, The Washington Post reported on an Associated Press story. Chief executive Hunter Harrison said they have already made progress and expect 1,700 positions to be eliminated by year end. CP’s total workforce is 19,500, which includes employees and contractors. The Calgary, Alberta-based company said the reductions will be achieved through job cuts, attrition and fewer contractors as part of its restructuring plan.

Representing the largest settlement ever by an auditor in a Canadian securities class-action case, Ernst & Young Canada agreed to pay $117-million to investors of Sino-Forest Corp., the Chinese timber firm whose shares collapsed in 2011 amid sensational fraud allegations, The Globe and Mail reported. The precedent-setting agreement, which still requires court approval, already marks the largest compensation payment ever in a securities class-action case involving a company listed solely in Canada.

The Ontario Court of Appeal has upheld a lower court decision that ranked indemnity claims by the auditors and underwriters of Sino-Forest Corp. with other equity claims in the company's restructuring, The Canadian Press reported. Several class-action lawsuits have been filed against the company, its auditors and its underwriters. The company's auditors and underwriters made indemnity claims against Sino-Forest under its Companies Creditors Arrangement Act restructuring for any damages they may have to end up paying if the class-action lawsuits are successful.

After scratching out a faster recovery than the U.S. and most developed nations, Canada is facing its strongest economic headwinds in years, including falling commodity prices and ballooning personal debt, the Wall Street Journal reported today. While the recession laid global peers low, Canada's strong bank balance sheets funded continued consumer spending during the recovery. Years of that easy credit in turn helped give rise to a housing boom that has underpinned an economy already benefiting from another surge—in commodity prices.

Statistics Canada said today that Canada's annual inflation rate remained subdued in October although a touch higher than expectations, as higher prices at gas stations and for meat were offset by a decline in natural gas costs, the Wall Street Journal reported today. The all-items consumer price index in October, on a year-over-year basis, was up 1.2 percent, matching the previous month's rate but slightly above market expectations of 1.1 percent, according to economists at Royal Bank of Canada.

The Ontario government is considerably downsizing a proposed super pension fund that would manage the retirement savings of public-sector workers, The Globe and Mail reported. The government was planning to create a pooled fund to manage the pension plans for employees in community colleges, many universities and the province's largest public sector union. But under a new accord with the government, two of the pension plans have been exempted from becoming part of the proposed fund.