Nortel Gets CCAA Protection

TORONTO -- Nortel(1) Networks Corporation (Toronto:NT.TO - News)(NYSE:NT - News) announced that further to its press release issued earlier today, the Company, Nortel Networks Limited and certain other Canadian subsidiaries have obtained an Order from the Ontario Superior Court of Justice (the "Canadian Court") for creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act ("CCAA").

Under the terms of the Order, Ernst & Young Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in formulating its restructuring plan.

Nortel Networks Inc also brought an application and obtained an Order in the Canadian Court recognizing the Chapter 11 cases in the U.S. as "foreign proceedings" in Canada and giving effect to the automatic stay under the U.S. Bankruptcy Code in Canada.

Nortel Networks Ltd.