A bankruptcy judge on Thursday approved the $65 million sale of Nortel Networks Corp.'s multiservice switch business to Swedish telecom equipment vendor L.M. Ericsson Telephone Co., Dow Jones Daily Bankruptcy Review reported. Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., signed off on the sale less than a week after Ericsson won an auction for the business. Ericsson beat out PSP Holding LLC, a special-purpose entity funded by Marlin Equity Partners and Canada's Samnite Technologies, which kicked off the Sept. 24 auction with a $39 million bid.

Boeing Co. is looking for new customers for the 717 planes previously flown by the low-cost arm of arm of Grupo Mexicana, which have been grounded for a month after the company filed for bankruptcy protection, Dow Jones Daily Bankruptcy Review reported. MexicanaLink operated 20 Boeing 717s leased from Boeing Capital, according to consultancy Ascend Worldwide. Owners and lessors have repossessed a handful of the 109 planes flown by the group and are working to recover and remarket the remainder, despite faint hopes that a slimmed-down Mexicana could restart later this year.

Aerospace giant Airbus says it’s confused as to why Mexicana continues to order replacement parts even though the Mexican airline hasn’t operated flights for the past month, The Wall Street Journal Bankruptcy Beat blog reported. Airbus is asking the U.S. Bankruptcy Court in Manhattan for vendor protections, such as assurance that it will be paid within seven days of delivering parts, after it received several unexpected orders from Mexicana in the past two weeks.

AbitibiBowater took another step towards ending 18 months of court protection from creditors when its restructuring plan won the required support from a majority of its U.S. creditors, the Canadian Press reported. As was the case last week with votes in Canada, creditors of Bowater Canada Finance Corp. failed to approve the plan. Aurelius Capital Management and Contrarian Capital Management opposed the plan as noteholders of the special purpose subsidiary which has no operating assets. BCFC will be excluded from the Chapter 11 restructuring in the U.S.

Several U.S. airports, including New York's John F. Kennedy International, said Compania Mexicana de Aviacion has failed to make a promised Sept. 15 payment to them, Dow Jones Daily Bankruptcy Review reported. In papers filed Monday with the U.S. Bankruptcy Court in Manhattan, the airports demanded additional protections for the amounts owed to them, including the right to tap certain letters of credit and to take back space assigned to Mexicana in their facilities, after the Mexican airline reneged on a promise to pay fees.

Canadian newsprint maker AbitibiBowater Inc. said Tuesday that a majority of its unsecured creditors have approved its plan for reorganization under Canadian bankruptcy law, Bloomberg BusinessWeek reported. The Montreal-based company filed for bankruptcy protection more than a year ago and has been soliciting votes from creditors. The company's plan will require creditor approval and confirmation by the U.S. and Canadian Courts. AbitibiBowater said it has received the votes it needs, except with respect to Bowater Canada Finance Corp., a special-purpose subsidiary with no operating assets.

Riviera Marine (Int.) Pty Ltd., part of a group of Australian companies that manufacture and sell luxury boats, is seeking bankruptcy protection in the U.S., Trade Only Today reported. Riviera CEO John Anderson said in a statement that the filing is not a new proceeding, but "merely a request that the U.S. courts recognize the [Deed of Company Arrangement] process, which was officially completed by Riviera in June 2010 and that allows us to complete our restructure of both our Australian and U.S. operations." The U.S. filing follows a voluntary administration in Australia.

Freshfields Bruckhaus Deringer has advised Goldman Sachs as the investment bank was today handed down a multimillion-pound fine by the Financial Services Authority (FSA), LegalWeek reported. The regulator has ordered the investment banking giant to pay £17.5m as a penalty for neglecting to inform it that its executive director Fabrice Toure was subject to a fraud investigation by US financial authorities when he became an FSA-approved person upon relocating to the UK in 2008.

Texas Attorney General Greg Abbott is challenging AbitibiBowater Inc. over Chapter 11 plan provisions he says violate the Bankruptcy Code and rob taxing authorities of the rights to recoup past taxes, Dow Jones Daily Bankruptcy Review reported. In a filing with the U.S. Bankruptcy Court in Wilmington, Del., Abbott invoked a March U.S. Supreme Court ruling that he says puts the court under a duty to reject AbitibiBowater's Chapter 11 plan. The high court's decision came in a case involving student-loan debt.

A judge has granted bankruptcy protection to ailing Mexicana airline, which indefinitely suspended all its flights last month, judicial sources said Tuesday, Agence France-Presse reported. The group has one year to restructure and avoid bankruptcy, judge Felipe Consuelo Soto, from the Federal Judicial Council, said in the ruling late Monday. The judge called for the Communications and Transportation Ministry to name a new administrator to deal with the airline's creditors within five days.