Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. – Bankrupt Nortel Networks asked a federal judge in Delaware on Monday for permission to terminate medical and disability benefits to some 4,000 former U.S. workers.

The company, which has sold most of its assets, said the benefits were costing $2 million a month, according to Bloomberg news.

A hearing is set fur July 16.

“Providing these benefits is a significant financial burden that does not provide any concomitant benefits to the debtor’s estates,” Nortel said in court papers as quoted by Bloomberg. “The individuals currently receiving the benefits of such expenditures are not providing services to the debtors.”

Nortel once employed thousands of people at its campus in RTP.

The company recently reported a quarterly profit thanks largely to its asset sales.

Nortel also set up a $50-million plus fund in Canada for some disability and pension payments for former workers.

For the full Bloomberg report,

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