Verizon Still Hopes to Block Nortel Sale to Avaya

Verizon Communications Inc. (VZ) was back in court this week to try to stop the sale of Nortel Networks’ enterprise division to Avaya Inc.

Avaya won the auction for $900 million on Monday and Verizon again insisted the equipment maker will refuse to service its U.S. government contracts. Verizon first took its case to a federal bankruptcy judge late last week.

For its part, Avaya, according to reports, insisted that it intends to “fulfill the contract” Verizon discusses in its filing.

Meanwhile, bankruptcy courts in the United States and Canada today are holding* joint hearings on the proposed Nortel-Avaya sale to determine whether it will be allowed to proceed.

*Update: Nortel announced via BusinessWire at 11:52 a.m. Pacific the joint hearings originally scheduled for Tuesday will not be held until tomorrow, Sept. 16.

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