New Restatement for Nortel

Those bogus numbers, as it turned out, helped trigger bonuses for executives and employees. Nearly the entire senior management and most of Nortel's board have been replaced in the wake of the bonusgate scandal.

As a result of the newest accounting discoveries, Nortel says it will miss its first-quarter 2006 financial filing deadline. Still, the company expects to have the report complete by June 5.

The accounting mixup has put Nortel in default of a $1.3 billion credit agreement with Export Development Canada. Nortel is seeking a waiver from EDC, which has a history of leniency with the troubled gearmaker. The company says it will hold a conference call on May 16 to provide a business update, which will likely be the release of its preliminary results for the first quarter that ended in March.

Nortel's shares sank a penny to $2.65 in early trading Monday.