Nortel Networks, the Canadian equipment maker that filed for bankruptcy protection last month, has won court approval to begin paying tens of millions of dollars worth of incentive bonuses to top executives and other employees in an effort to help keep them from leaving the company. The move comes despite an announcement last month that Nortel’s Board had earlier approved management’s recommendation to not pay any bonuses for last year. TheStreet.com, citing a Bloomberg report, notes that Nortel has been cleared to pay US$22 million in bonuses to 880 employees. Meanwhile, the vendor is also reportedly seeking a further US$23 million to pay 92 senior executives who can help pull the company out of its restructuring. Nortel will go back to court later this month for approval of those payments.

Last week Nortel’s chief executive Mike Zafirovski told the Financial Times (FT) that the company hopes to complete its reorganisation plans and emerge from bankruptcy protection before mid-year. Zafirovski told the FT that the Canadian equipment maker – which earlier this month reiterated plans to become a viable business despite reporting a widened fourth-quarter loss of US$2.14 billion – aims to complete the reorganisation plan “over the next few weeks” before submitting it for approval to the board towards the end of this month. The Nortel chief executive said he hoped to put the business reorganisation plan before stakeholders – including creditors – next month, and to complete the process “by the end of April or May.” The FT noted that would clear the way for Nortel to seek the courts’ approval to emerge from bankruptcy protection. As well as announcing the appointment of CFO Pavi Binning as Chief Restructuring Officer, the vendor has also announced plans in recent weeks to cut around 5,000 jobs.