Nortel Takes Another Step Toward Wrapping Up Bankruptcy Case

Judges in Canada and the U.S. on Thursday approved materials explaining Nortel Networks Corp.’s creditor-repayment plan, inaugurating the beginning of the end of one of the priciest bankruptcies on record, The Wall Street Journal reported. Thursday’s court hearings launched the formal process of polling creditors on the bankruptcy plans that will end Nortel’s corporate life after eight years in bankruptcy, and divide the $7.3 billion in proceeds from its global going-out-of-business sale. Creditors have to weigh in formally, and the Nortel distribution schemes need to pass another court test, but checks may finally go out next year to creditors including employees put out of work in 2009, when the telecommunications icon was swept under in the global recession. Read more. (Subscription required.)