A vocal group of Nortel employees has been defeated in its first fight in Ontario court Wednesday. Superior Court Justice Geoffrey Morawetz delayed the proceedings for 45 days.

A lawyer for the dissenters argued that as the group has got only five days to react to the controversial deal, it would compel employees for filing a suit against Nortel Directors and Executives for the mismanagement of pension, health, and welfare funds.

"I would suggest, your honor, that the good of the many should not be sacrificed because of the discontent of the few", said Nortel lawyer Derrick Tay.

The agreement to expand health, pension and long-term care benefits has raised anger among the dissident group.

Nortel Networks Corp., once North America's biggest maker of telecommunications equipment, has got the permission of the court for selling its Internet phone business for US$282 million to Genband Inc.

"I said this is not about the end of Nortel, this is about the beginning of a new Nortel. We can't save this company", said Mr. Tay.