A bid by former Nortel Networks executives to save the bankrupt company appears to be running out of time. The group of executives is trying to secure enough money to buy the Canadian company and keep it from being split up, but is asking the Canadian government to give it more time to raise the funds.
"We want to make it clear we're not asking the government for money," Ian Craig, formerly Nortel's president for broadband and wireless communication and chief marketing officer, told Computerworld. "All we're asking is that the government not allow Nortel to be scattered to the four winds." The group, dubbed "Save Nortel," includes former Nortel president Rober Ferchat, who said the group is seeking a reported $1 billion in financing from equity investors.
Nortel, for its part, said it is keeping all of its options open. The company's Canadian operations have until July 30 to submit plans for restructuring.
"No decisions have been taken yet and we are exploring all options, including those from third parties if they are presented to us," Nortel spokesman Ryan Hill said. "If Ferchat and his group have a business plan to bring to the table, they can do so as part of our overall restructuring process."
If Ferchat's plan works, the new owners of Nortel would fire current Nortel CEO Mike Zafirovski and put in place a new management team.
Nortel entered bankruptcy protection in mid-January, and speculation has mounted that the company will be sold in parts. Nortel posted a $507 million net loss in the first quarter amid falling revenues.
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