Nortel gets stay of proceedings extension to help continue restructuring, operations sales

Nortel gets stay period extension

SAN FRANCISCO — Telecom equipment maker Nortel Networks Corp. said Wednesday that the Ontario Superior Court of Justice has extended a break in its court case to help it continue selling off and restructuring its operations.

The stay of court proceedings in Nortel’s bankruptcy case has been extended to July 22, the company said.

Ontario-based Nortel filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act in January 2009, saying the economic crisis compounded its existing financial troubles and made a turnaround impossible.

The company has been selling its operations piece by piece for a year.