Nortel reaches settlement with IRS, resolves internal funding disputes
Nortel settles with IRS
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RESEARCH TRIANGLE PARK, N.C. - Nortel took two more steps Wednesday toward resolving bankruptcy issues – one internal, the other with the Internal Revenue Service.
The network communications gear maker, which declared bankruptcy in January, said it had settled a claim with the IRS and also resolved internal funding issues within its corporate structure.
Nortel said it would pay the IRS $37.5 million to resolve IRS claims dating from 1998 through 2008. the IRS had sought some $3 billion.
The agreement is still subject to U.S. court approval.
Meanwhile, in Toronto, Nortel said its Canadian and U.S. subsidiaries moved to settle what the company called “intercompany claims” dating from 2001 through 2005. Some $2 billion is involved. Nortel Networks will pay Nortel Networks Limited some $190 million in 2010 as part of the agreement.
Nortel employs some 1,300 people at its campus in RTP.
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