The insolvent telecom equipment manufacturer said Tuesday that the latest extension - from Oct. 31 - will allow Nortel and its subsidiaries to continue restructuring efforts and developing a plan of arrangement under CCAA.
Nortel said in August that it had completed the sale of all its businesses and remaining patents, generating proceeds of US$7.8 billion and was working to wrap up the creditor protection process.
The now defunct concern, which reports in U.S. dollars, said as of the second quarter ended June 30, it had US$688 million in cash, plus a restricted cash balance of US$7.6 billion consisting mainly of proceeds from its divestments.
Since Nortel filed for bankruptcy in Canada and the U.S. in early 2009, it has sold US$3.2 billion of operating units, bringing the total value of the company's sell-off to US$7.8 billion - one of the biggest asset sales in Canadian history. It once employed 95,000 people around the world and was worth nearly $300 billion.
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