Nortel Reaches Settlement With US Long-Term Disabled Workers

Nortel Networks Corp. has reached a $28 million settlement with disabled U.S. workers, averting a trial over its treatment of some of its most vulnerable creditors.

Outlined in bankruptcy-court documents, the settlement allows Nortel to shut off pay and benefits to some 200 people with chronic disabilities at the end of May. They will get an unsecured claim in the former telecommunications equipment maker’s bankruptcy case instead.