Nortel has been given yet another extension to wrap up its bankruptcy proceedings.
In a release sent out Friday, the former tech giant says it will remain under court protection until at least June 30th, 2011. The process started just over two years ago.
The latest review of the case by the agency overseeing the proceedings states there is $35.6 billion in claims filed by just over 1,000 individuals or companies. So far, 430 of those claims have been reviewed and given tentative approval but they account for less than one-tenth of total claims.
Nortel's cash assets total $6.1 billion leaving a huge gap between what's claimed and what might eventually have to be paid out. An effort to use mediation to resolve some of the major claims will resume in April.
The sale of the last Nortel asset, a pool of thousands of patents, is reported to have hit a delay because no one is willing to bid the kind of money Nortel wants for the patents.
The review also recommends that the long-term disabled workers who lost all their benefits at the end of 2010 should be allowed to apply for a one time $3,000 "hardship" payment. There are about 400 people who may qualify for that payment.
