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Bid to collect interest on Nortel bonds rejected: report

A man walks past a company sign at a Nortel Networks office tower in Toronto

NATHAN DENETTE/THE CANADIAN PRESS

A Canadian judge has rejected a bid by investors to collect interest on about $4-billion (U.S.) of bonds issued by now-defunct telecommunications company Nortel Networks Corp., according to a report from Dow Jones.

The decision from Justice Frank Newbould, who is overseeing Nortel's Canadian bankruptcy proceeding, was released Tuesday in Toronto, at the end of what was originally supposed to be a joint session with a U.S. court.

Nortel, which filed for bankruptcy protection in 2009, has $4.1-billion in outstanding bonds.

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A settlement that would see U.S. bondholders collect up to $1-billion in interest payments was reached in June.

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