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Breaking News

URGENT: Video shows beheading of second American journalist

DUBAI (Reuters) - The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff, the SITE monitoring service reported on Tuesday. A masked figure in the video also issued a threat against a British hostage, a man the group named as David Haines, and warned governments to back off "this evil alliance of America against the Islamic State", the monitoring service said. (Reporting by William Maclean, Editing by Angus MacSwan)

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Mediation extended in fight over $9 billion in Nortel assets

(Reuters) - A mediator overseeing creditor negotiations in Nortel Networks' bankruptcy said on Tuesday he is extending talks over how to distribute about $9 billion in cash at the fallen telecom.

Ontario Chief Justice Warren Winkler said in a statement the mediation, scheduled to end at noon on Tuesday, had been extended, but did not say for how long.

A spokesman for the mediator declined to give detail on the length of the extension.

Nortel, once the largest telecoms equipment maker in North America, filed for bankruptcy in 2009, hampered by accounting problems and failing to recover from the burst of the 1990s tech bubble. It went on to raise $9 billion after selling its assets, but never resolved how to divide the value among creditors in Canadian, U.S. and European insolvency proceedings.

Winkler, as mediator, has been trying to reach a settlement to allocate that money through more than a week of talks in a Toronto hotel.

Dividing the money has proven a vexing exercise, one Winkler called "one of the most complex transnational legal proceedings in history.

(Reporting by Nick Brown in New York and Tom Hals in Wilmington, Delaware; Editing by Lisa Shumaker)