Nortel US withdraws their motion to terminate medical and LTD benefits

Docket 3651 filed today in the US bankruptcy court by Nortel withdrew their motion to terminate medical benefits and long term disability benefits. The filing still indicated that they are reserving the right to file at a later time. At this point I think the benefits will have to be extended beyond August but we will have to see what their next move is. It looks like the letters sent in by everyone including the NRPC and the US Trustee had an impact on Nortel which resulted in this motion withdrawal. The hearing is still on for Aug 4th for a number of other items, but this action by Nortel may mean that the motion will not be on that agenda.

Here's a copy of the docket:


IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
--------------------------------------------------------------
In re
Nortel Networks Inc., et al.,1
Debtors.
Chapter 11
Case No. 09-10138 (KG)
Jointly Administered
Re: D.I. 3204
-------------------------------------------------------------- X
NOTICE OF WITHDRAWAL OF DEBTORS’ MOTION FOR ENTRY OF AN ORDER AUTHORIZING DEBTORS TO TERMINATE CERTAIN RETIREE AND LONGTERM DISABILITY PLANS [RE: D.I. 3204]

PLEASE TAKE NOTICE that Nortel Networks Inc. (“NNI”) and certain of its affiliates, as debtors and debtors in possession (collectively, the “Debtors”), in the above-captioned cases hereby withdraw without prejudice the Debtors’ Motion For Entry Of An Order Authorizing Debtors To Terminate Certain Retiree And Long-Term Disability Plans [D.I. 3204] (the “Motion”) filed with the Court on June 21, 2010.

The Debtors reserve all of their rights with respect to the relief sought in the Motion, including without limitation the right to file additional pleadings seeking similar relief.

1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s tax identification number, are: Nortel Networks Inc. (6332), Nortel Networks Capital Corporation (9620), Nortel Altsystems Inc. (9769), Nortel Altsystems International Inc. (5596), Xros, Inc. (4181), Sonoma Systems (2073), Qtera Corporation(0251), CoreTek, Inc. (5722), Nortel Networks Applications Management Solutions Inc.(2846), Nortel Networks Optical Components Inc. (3545), Nortel Networks HPOCS Inc. (3546), Architel Systems (U.S.) Corporation (3826), Nortel Networks International Inc. (0358), Northern Telecom International Inc. 6286),
Nortel Networks Cable Solutions Inc. (0567) and Nortel Networks (CALA) Inc. (4226). Addresses for the

Debtors can be found in the Debtors’ petitions, which are available at http://chapter11.epiqsystems.com/nortel.

Dated: July 15, 2010
Wilmington, Delaware
CLEARY GOTTLIEB STEEN & HAMILTON LLP
James L. Bromley (admitted pro hac vice)
Lisa M. Schweitzer (admitted pro hac vice)
One Liberty Plaza
New York, New York 10006
Telephone: (212) 225-2000
Facsimile: (212) 225-3999
- and -
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
/s/ Ann C. Cordo
Derek C. Abbott (No. 3376)
Eric D. Schwartz (No. 3134)
Ann C. Cordo (No. 4817)
Alissa T. Gazze (No. 5338)
1201 North Market Street
P.O. Box 1347
Wilmington, Delaware 19801
Telephone: (302) 658-9200
Facsimile: (302) 658-3989
Counsel for the Debtors and Debtors in Possession
3672161.1