Nortel Moves To Ax Retiree Benefits In Ch. 11

Law360, Wilmington (July 31, 2012, 3:50 PM EDT) -- With mediation efforts stalled, defunct telecom Nortel Networks Inc. asked a Delaware bankruptcy judge on Monday for permission to terminate benefits for its retirees and push through a $40 million settlement of the dispute.

As the company nears the end of a complex global liquidation, Nortel has been in talks since April with a committee representing 3,300 retirees and mediator Richard Levin of Cravath Swaine & Moore LLP on how to extricate itself from the benefit plans, which have cost the debtors around $26 million over...
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