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Local Tech Wire
RESEARCH TRIANGLE PARK, N.C. – A proposed $50 million agreement between bankrupt and its former employees in Canada may be in trouble.
The agreement, which was announced earlier this month, , including the legal representative of U.S. Nortel pensioners, according to the Ottawa Citizen.
Nortel still maintains an operation in RTP although the company is winding down and selling off most of its assets.
The Canadian judge overseeing Nortel’s bankruptcy has scheduled a hearing for March 3 to discuss the settlement.
“The creditors oppose a provision which opens the door to former Canadian employees getting a bigger share of Nortel assets if the federal government changes insolvency laws,” according to Bert Hill of the Ottawa newspaper.
“The creditors include giants like the Bank of New York Mellon representing bondholders owed about $4 billion; Flextronics, which makes 70 per cent of Nortel equipment, and the Pension Benefit Guarantee Corp. representing 30,000 U.S. Nortel pension plan members,” he reported.