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Nortel Receives Bankruptcy Extension

Telecom equipment company said Tuesday it has received a bankruptcy protection extension to May 1 from the Ontario Superior Court of Justice.

TORONTO (AP) -- Telecom equipment company Nortel Networks Corp. said Tuesday it has received a bankruptcy protection extension to May 1 from the Ontario Superior Court of Justice.

Nortel filed for creditor protection Jan. 14 in Canada and the United States and got an initial 30-day protection period.

The Toronto-based company became the first major technology company to take that step in this global downturn. The filing came a day before Nortel was due to make a debt payment of $107 million.

The extension of protection will "provide Nortel with an opportunity to develop a comprehensive business and financial restructuring plan for consideration by their creditors and the Canadian Court," the company said late Tuesday.

In a related development, Nortel said the court also approved an amended financing deal with Export Development Canada to give the company access to $30 million of export-related financing help up to May 1.

Meanwhile, Nortel and its subsidiaries obtained a court order allowing the company to postpone its annual meeting beyond a June 30 deadline.