Nortel seeks to cut retiree benefits to 4,000

WILMINGTON, Del., June 22 (Reuters) - Nortel Networks Corp , once a leading maker of telecommunications gear, asked a bankruptcy court to allow it to cut the medical and disability benefits it provides to thousands of retirees, according to court documents.

Nortel, a Canadian company that is liquidating rather than reorganizing, said in the Monday filing its retiree medical, long-term disability and life insurance plans are funded on a pay-as-you-go basis, have no assets and cost the company a combined $2 million a month.

The company wants the court's permission to end the benefits on Aug. 31.

The company said it currently provides retiree medical benefits to 4,019 former employees and their dependents and 280 participate in the company's long-term disability plan.

The company said it has contacted other providers to offer medical benefits options that it said were not readily available on the open market.

Nokia is selling off its assets to repay creditors. It filed for bankruptcy in early 2009.

The case is In re: Nortel Networks Inc, U.S. Bankruptcy Court for the District of Delaware, No. 09-10138.

(Reporting by Tom Hals, editing by Matthew Lewis) Keywords: NORTELNETWORKS/BENEFITS ([e-mail]; + 1 302-993-6283; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.