Nortel Obtains Further Extension of Stay Period Under CCAA

Nortel Obtains Further Extension of Stay Period Under CCAA 
TORONTO, ONTARIO -- (Marketwire) -- 10/30/12 -- Nortel(1) Networks
Corporation (OTCBB:NRTLQ) announced today that it, its principal
operating subsidiary Nortel Networks Limited and its other Canadian
subsidiaries that filed for creditor protection under the Companies'
Creditors Arrangement Act (CCAA) have obtained an order from the
Ontario Superior Court of Justice (Canadian Court) further extending,
to February 2, 2013, the stay of proceedings that was previously
granted by the Canadian Court. The purpose of the stay of proceedings
is to provide stability to the Nortel companies to continue with
their restructuring efforts and to continue to work toward the
development of a plan of arrangement under CCAA. 
The materials filed in the CCAA proceedings are available on the
Restructuring Document Centre of Ernst & Young Inc. (the "Monitor")
or by contacting the Monitor directly at 1-866-942-7177. 
About Nortel 
For more information, visit Nortel on the Web at 
Certain statements in this press release may contain words such as
"could", "expects", "may", "should", "will", "anticipates",
"believes", "intends", "estimates", "targets", "plans", "envisions",
"seeks" and other similar language and are considered forward-looking
statements or information under applicable securities laws. These
statements are based on Nortel's current expectations, estimates,
forecasts and projections about the operating environment, economies
and markets in which Nortel operates. These statements are subject to
important assumptions, risks and uncertainties that are difficult to
predict, and the actual outcome may be materially different. Nortel's
assumptions, although considered reasonable by Nortel at the date of
this press release, may prove to be inaccurate and consequently
Nortel's actual results could differ materially from the expectations
set out herein. 
Actual results or events could differ materially from those
contemplated in forward-looking statements as a result of the
following: (i) risks and uncertainties relating to the Creditor
Protection Proceedings including: (a) risks associated with Nortel's
ability to: obta
in required approvals and successfully consummate
remaining divestitures; successfully conclude ongoing discussions for
the sale of Nortel's remaining assets; develop, obtain required
approvals for, and implement a court approved plan; allocation of the
sale proceeds of our businesses and assets among the various Nortel
entities participating in these sales may take considerable time to
resolve; resolve ongoing issues with creditors and other third
parties whose interests may differ from Nortel's; maintain adequate
cash on hand in each of its jurisdictions to fund remaining work
within the jurisdiction during the Creditor Protection Proceedings;
obtain any further required approvals from the Canadian Monitor, the
U.K. Administrators, the U.S. Principal Officer, the U.S. Creditors'
Committee, or other third parties; utilize net operating loss
carryforwards and certain other tax attributes in the future; avoid
the substantive consolidation of NNI's assets and liabilities with
those of one or more other U.S. Debtors; operate effectively, and in
consultation with the Canadian Monitor, the Canadian creditors'
committee, the U.S. Creditors' Committee, the U.S. Principal Officer,
and work effectively with the U.K. Administrators and French
Administrator in their respective administration of the EMEA
businesses subject to the Creditor Protection Proceedings; continue
as a going concern; actively and adequately communicate on and
respond to events, media and rumors associated with the Creditor
Protection Proceedings; retain and incentivize key employees as may
be needed;
retain, or if necessary, obtain court orders or approvals with
respect to motions filed from time to time; resolve claims made
against Nortel in connection with the Creditor Protection Proceedings
for amounts not exceeding Nortel's recorded liabilities subject to
compromise; prevent third parties from obtaining court orders or
approvals that are contrary to Nortel's interests; and (b) risks and
uncertainties associated with: limitations on actions against any
Debtor during the Creditor Protection Proceedings; the values, if
any, that will be prescribed pursuant to any court approved plan to
outstanding Nortel securities and, in particular, that Nortel does
not expect that any value will be prescribed to the NNC common shares
or the NNL preferred shares in any such plan; the delisting of NNC
common shares from the NYSE; the delisting of NNC common shares and
NNL preferred shares from the TSX and; any cease trade orders that
are expected to be issued by Canadian Securities Administers to
prohibit trading in securities of NNC and NNL following the third
quarter filing deadlines applicable to NNC and NNL's quarterly
reporting obligations under Canadian securities laws; and (ii) risks
and uncertainties relating to Nortel's remaining restructuring work
including fluctuations in foreign currency exchange rates; the
sufficiency of workforce and cost reduction initiatives; any adverse
legal judgments, fines, penalties or settlements related to any
significant pending or future litigation actions; failure to maintain
integrity of Nortel's information systems; and Nortel's potential
inability to maintain an effective risk management strategy. 
For additional information with respect to certain of these and other
factors, see Nortel's Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other securities filings with the SEC. Unless
otherwise required by applicable securities laws, Nortel disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel
Nortel Networks Corporation
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