A federal bankruptcy judge today rejected Verizon's bid to block Nortel Networks from selling a division for $915 million.
Avaya, based in New Jersey, agreed Monday to buy Nortel's Enterprise Solutions business. But Verizon, a major user of Nortel products and services, objected to the sale, saying Avaya's refusal to assume contracts it has with Nortel could jeopardize communications systems of Verizon business customers, including various government agencies.
Following a bankruptcy hearing in Delaware this morning, however, Judge Kevin Gross overruled Verizon's objection and ordered that a hearing to approve the sale proceed, the Associated Press reported. Gross is expected to rule on the sale later today.
Joel Hackney, the top executive at Nortel's Enterprise division, is based at the Canadian company's Research Triangle Park campus, where it employs about 1,850 workers.
Avaya is expected to keep about 75 percent of the Enterprise division's employees. The deal is expected to be completed later this year.
Nortel filed for bankruptcy in January and is selling its parts to repay creditors.