A bankruptcy court gave the U.S. portion of Nortel Networks a four-month extension of bankruptcy protection while the company continues to mull its options, which may include breaking into chunks. Nortel filed for bankruptcy protection in January.
Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., gave the company until Sept. 11 to submit its plan for restructuring and until Nov. 10 to win creditor support for whatever plan it approves. In late April, Ontario Superior Court Judge Geoffrey Morawetz granted Nortel's Canadian operation a three-month bankruptcy extension until July 30.
Nokia Siemens Networks is among a number of companies that have expressed interest in buying some of Nortel's units should it decide to split it self up rather than continue on as a single entity. The Wall Street Journal reported in April that Nokia Siemens made an unsolicited offer for Nortel's carrier networks business, including its CDMA group, which produced most of Nortel's operating profit. Nokia Siemens was also reported to have expressed interest in the Nortel unit focused on developing LTE technology.
Nortel posted a $507 million first quarter net loss, while revenue fell 37 percent.
- see this Dow Jones Daily Bankruptcy Review article
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