Nortel gets OK to pay wages, NYSE suspends stock

A Nortel sign is seen in downtown Toronto, February 27, 2008.

TORONTO (Reuters) - Nortel Networks Corp NT.TONT.N, the long-ailing telecom equipment maker that filed for bankruptcy protection earlier this week, said on Friday a U.S. court has approved a series of motions that will help kick off its restructuring.

Toronto-based Nortel also said it has received official notice that the New York Stock Exchange will suspend the listing of its common shares in wake of its bankruptcy filing.

The company, North America's biggest marker of telephone gear, said the motions approved by the court include allowing Nortel to continue paying employee wages, salaries, commissions and benefit programs as usual.

The company filed for court shelter from its lenders on Wednesday, blaming the global economic downturn for sabotaging its efforts at a turnaround that began in 2005.

Nortel's common stock continues to trade on the Toronto Stock Exchange, where it was down 1.5 Canadian cents, at 10 Canadian cents on Friday afternoon.

In mid-2000, the shares were worth more than C$1,100 each, adjusted for a stock consolidation that took place in late 2006.

(Reporting by Wojtek Dabrowski; editing by Peter Galloway)