WRAL Tech Wire

Judge gives Nortel 90 more days for reorganization plan

A Canadian court overseeing the bankruptcy of telecommunications gear manufacturer Nortel has granted the company a three-month extension for its reorganization plan.

“The purpose of the stay of proceedings is to allow the Nortel companies to continue to develop a restructuring strategy for consideration by their creditors and the Canadian Court and file a plan of arrangement,” Nortel said in a statement.

The judge’s decision extends the original filing of a reorganization plan that had been set for May 1.

Nortel employs some 2,000 people in the Research Triangle area. Its headquarters are in Canada.

Last Friday, Ernst & Young, the monitor for the Nortel case, endorsed an extension for Nortel to reorganize.

Nortel filed for bankruptcy in January.