Nortel Networks Inc., a defunct telecom company, has reached a deal that will cut more than $3 billion from what was allegedly owed to former Nortel entities in Europe, marking what it called a "significant milestone" to ending its five-year bankruptcy, Reuters reported yesterday. In return for withdrawing the claims, administrators of insolvent Nortel entities in Europe and a pension trustee in Britain would each receive high-priority administrative claims for $37.5 million, according to a court filing yesterday. The parties also agreed to work together to try to resolve how to divide $7.5 billion in cash that was raised from liquidating the former Canadian telecommunications equipment maker, according to the documents.
