A Toronto judge has approved a slightly revamped deal for about 20,000 Nortel pensioners, long-term disabled workers and employees who were laid off without severance.
The judge rejected the first draft of the $57-million package because he disagreed with a clause that would give the workers higher priority on the list of creditors if the federal government was to change the Bankruptcy Act. The clause was withdrawn, and the judge approved the deal Wednesday afternoon.
Lawyers for Nortel and other creditors believe the deal is good.
Don Sproule and Sue Kennedy, who head two associations that represent workers, said they are relieved the agreement was approved.
"It has been a nightmare for the last three days," Kennedy told CTV Ottawa.
It was possible Nortel could have cancelled all benefits as of Wednesday. Kennedy said many people told her they couldn't live if that happened. Now, she says they have until year's end to decide the next step.
Meanwhile, the lawyer representing long-term disabled workers opposed the deal.
Joel Rochon says he will look at filing an appeal to stop the deal. He says the key point may be that there was no proper notice on the new deal, which was struck in closed door meetings by court-appointed lawyers.
Even those who support the deal say it was a hard decision to make.
"It was the hardest decision I ever had to make in my life," said Kenndy.
Still, she hopes that efforts by the Liberals and NDP to change the Bankruptcy Act will succeed.
