The Nortel bankruptcy could turn out to be a much longer process than anyone was saying when the whole thing began in January. Buried in this Ottawa Citizen article is this nugget claiming Nortel intends to ask for another extension of the deadline for it to submit a reorganization plan:
While Canadian protection from creditors has been extended to at least July 30, that won't be enough.
Nortel will ask a U.S. Bankruptcy court in Delaware on May 20 to extend the deadline for production of a full-scale reorganization plan until Sept. 11 and the deadline for getting creditor support until Nov. 10.
This plan is very different from the new cost-reduction business plan that Nortel was supposed to have released last month. It will decide whether Nortel emerges from bankruptcy or is liquidated. It will require the majority support of creditors around the world.
Nortel will ask a U.S. Bankruptcy court in Delaware on May 20 to extend the deadline for production of a full-scale reorganization plan until Sept. 11 and the deadline for getting creditor support until Nov. 10.
This plan is very different from the new cost-reduction business plan that Nortel was supposed to have released last month. It will decide whether Nortel emerges from bankruptcy or is liquidated. It will require the majority support of creditors around the world.
If this report is accurate, we're approaching a new level of uncertainty for Nortel customers. And that ain't good.
