Nortel Deal With PBGC OK'd After Canadian Deal Nixed

Law360, New York (March 29, 2010, 3:56 PM EDT) -- Following a Canadian court's decision to set aside a $55.8 million settlement in which bankrupt Nortel Networks Corp. would pay benefits to former workers, a U.S. court has approved a stipulation calling for the company to pay the Pension Benefit Guaranty Corp. out of proceeds from an upcoming asset sale.

The U.S. Bankruptcy Court for the District of Delaware approved the stipulation on Monday, calling for Nortel to pay $100,000 in cash to the PBGC as a settlement, after which the PBGC will waive its right...
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