TORONTO - Nortel Networks Corp. (TSX:NT) has been granted a 90-day extension of its court protection from bankruptcy until July 30.
The stay of creditor litigation allows Nortel to continue work on a restructuring strategy under the Companies' Creditors Arrangement Act.
The previous extension in Ontario Superior Court had been set to end May 1.
Nortel also said Tuesday it has arranged a further amendment to its agreement with Export Development Canada providing continued access until July 30 to up to US$30 million for subsidiary Nortel Networks Ltd.
In endorsing Nortel's request for a CCAA extension, court-appointed monitor Ernst & Young said the case "will require significant additional time."
It also said Nortel is "working diligently and in good faith towards developing a restructuring strategy ... in the context of a complex multijurisdictional set of insolvency proceedings."
