[Light Reading] Nortel Networks Ltd. is seeking to extend its period of protection from creditors to the end of July, according to a document filed by the vendor's bankruptcy "Monitor," Ernst & Young, with the Ontario Superior Court of Justice on April 24.
Nortel announced in January it was initiating bankruptcy protection proceedings so that it could restructure its operations; since then it has reported deteriorating trading conditions and sold a small part of its business.
According to the latest filing, which provides an update of Nortel's attempts to achieve solvency, Nortel is seeking an extension to its protection until July 30. Its current period of protection expires on May 1.
Ernst & Young notes that "the restructuring of Nortel will require significant additional time to formulate an agreed upon restructuring strategy... [the extension] is necessary for the restructuring strategy and plan to be fully developed."
Nortel Seeks Protection Extension