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Report: Nortel may sell its major units
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Nortel Networks is considering selling some of its major businesses rather than continue trying to restructure under bankruptcy protection, according to a report in The Wall Street Journal.
The Canadian telecommunications equipment maker, which filed for bankruptcy in mid-January and has until May to restructure, is said to be in talks with some of its competitors to sell its wireless-equipment business and its enterprise telecom business.
Nortel declined to comment. The company is said to be talking to rivals such as Nokia Siemens Networks, to sell its wireless business. Avaya and Siemens Enterprise Communications, a joint venture of Siemens and Gores Group, are said to be interested in the company's enterprise unit. Nortel's board is expected to meet next week to discuss the company's plans to emerge from bankruptcy.
Nortel posted a $2.14 billion loss in the fourth quarter and a $5.8 billion loss for all of 2008. Its revenue declined 15 percent year-over-year in the fourth quarter, down to $2.72 billion.
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Comments
Posted by Diane Urquhart | March 12, 2009 - 8:58pm
Nortel management, and some law firms, want the Nortel terminated employees to believe that they have no power to get their termination and severance pay honoured above the pro-rata share of net assets being paid to the unsecured creditors in the Canadian Companies' Creditors Arrangement Act court proceedings. We estimate that the Nortel Canadian terminated employees are owed only 1% of the total value owed to all Nortel creditors. On the other hand, it is likely there are an estimated 1,100 Nortel Canadian terminated employees and this headcount exceeds the 50.1% headcount needed for approval of the Nortel CCAA restructuring plan. This headcount majority gives the Canadian terminated employees group leverage to achieve more than its pro- rata share of the value taken by the unsecured creditors, even achieving payment in full.
To learn more about our Plan for Nortel Terminated Employees to Gain Leverage in the CCAA Proceedings , Juroviesky and Ricci LLP is holding a webinar on Monday March 16, 2009 at 3:00 PM EDT.
Details at www.jruslaw.com/NortelCCAA
Date: Monday, March 16, 2009, 3:00 PM - 4:00 PM EDT
To register for our Webinar on Monday March 16, 2009, please visit the following link and follow instructions. https://www2.gotomeeting.com/register/646899977
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