Telecom
Nortel Cleared to Pay $22M in Bonuses
Scott Moritz
03/05/09 - 05:18 PM EST
Nortel (NT) convinced a bankruptcy court that it needs to pay $22 million in bonuses to help keep 880 employees from leaving the company.
The failed Toronto telecom equipment supplier was granted approval for the move by a U.S. Bankruptcy Court judge in Wilmington, Del., on Thursday, according to a report by Bloomberg.
Nortel, which filed for Chapter 11 protection in January after failing to turn the business around after a massive bonus scandal and the steep drop in demand for new gear.
Nortel is also seeking as much as $23 million in bonuses for senior executives who can help pull the company out of its restructuring, according to the Bloomberg report.