Nortel Wins Final Approval of $66.9 Million SettlementSophia Pearson
Nortel Networks Inc., the defunct telecommunications company, won final court approval of a $66.9 million settlement over retiree benefits.
U.S. Bankruptcy Judge Kevin Gross approved the accord at a hearing today in Wilmington, Delaware. The agreement, negotiated with a committee representing retirees, applies to Nortel’s U.S. employees.
Nortel, based in Mississauga, Ontario, filed for bankruptcy in Canada, the U.S., the U.K. and France in 2009. The company is still in a dispute with U.K. administrators who are demanding $2.67 billion from Nortel’s main U.S. unit to pay retiree benefits.
Nortel’s U.K. retirees lost a bid last month to force the company into private arbitration over how to split $7 billion raised in liquidation sales of Nortel’s most valuable assets.
The case is Nortel Networks Inc., 09-10138, U.S. Bankruptcy Court, District of Delaware (Wilmington)