Nortel Networks, as it continues to restructure under bankruptcy protection, is changing its plans for next month's CTIA trade show in Las Vegas.
The beleaguered telecommunications equipment vendor, which filed for bankruptcy protection in January, is dramatically cutting its presence at the trade show. Nortel had booked 722 room nights for the trade show at Caesars Palace, including the $2,300-a-night Palace Tower Senators Suite. Lawyers representing the company in a Delaware bankruptcy court filed a motion this week to cancel the hotel contract, saying the company booked too many rooms and paid too much.
Nortel has "concluded that it makes sound business sense to reject the contract and to instead book only the number of rooms that [Nortel and its subsidiaries] anticipate actually needing at a significantly less-expensive nightly rate," the filing said. The company was planning on sending at least 180 people to the show and now expects to send around 60.
Additionally, the company got the bankruptcy court to approve $22 million in bonuses it said it needed to keep 880 employees. Nortel is also seeking as much as $23 million for company executives who it says can help restructure the company. Nortel posted a $2.14 billion loss in the fourth quarter and its revenue dropped 15 percent.
For more:
- see this article on Nortel's CTIA plans
- see this article on bonuses
Related Articles:
Nortel posts $2.14B loss in Q4
Nortel cuts 3,200 jobs
Nortel deal with Radware worth only $17.65M
Nortel suppliers concerned over bankruptcy delay
Nortel to slash more jobs amid bankruptcy
Nortel tries to extend bankruptcy protection