Citing the need for “significant additional time” to restructure, Nortel (NRTLQ.PK) is seeking approval from an Ontario court for a three-month bankruptcy protection extension to July 30.
In the latest Monitor’s Report, Ernst & Young said Nortel is “working diligently and in good faith towards developing a restructuring strategy to address its financial and strategic issues”, and that more time will “permit the Applicants to make further progress developing a restructuring strategy and filing a plan of arrangement”.
Ernst & Young said Nortel will have enough cash to last through the proposed three-month extension. As of April 11, Nortel had cash reserves of $2.57-billion. (See chart below for a breakdown on where the cash resides)
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