Nortel files for bankruptcy amid declining sales
Nortel Networks Corp, North America's biggest maker of telephone equipment, filed for bankruptcy protection in Wilmington, Delaware, amid the global credit crunch and declining sales. Nortel, based in Toronto, had more than $1 billion in assets and debt, according to Wednesday's Chapter 11 filing of its US subsidiary. The company said that several Canadian affiliates will also seek court protection on Wednesday. "The company's normal day-to-day operations are expected to continue without interruption," Nortel said on Wednesday in an emailed statement. "This process will allow Nortel to deal decisively with its cost and debt burden, to effectively restructure its operations and to narrow its strategic focus in an effective and timely manner." Nortel has lost almost $7 billion since chief executive officer Mike Zafirovski took over in 2005, leaving him struggling for the funds to operate the company. Bank of New York Mellon was listed as Nortel's largest unsecured creditor in its role as trustee on more than $3.8 billion in notes. Export Development Canada is owed $186.7 million. "If they're going to go, it's better to go now," said Richard Windsor, a global technology specialist at Nomura International Plc in London. " BLOOMBERG * 'Indian biz not affected' * Bangalore: Nortel Asia said that Nortel's Indian and Asian operations are not included in the bankruptcy proceedings and are expected to continue to operate as normal. "No announcements were made on Wednesday regarding strategy and we are unable to expand further at this time. We remain fully committed to supporting all our customers, external stakeholders and our R&D investments in India and around the world during this process," Matthew Wray, spokesperson for Nortel Asia, said in an emailed response to TOI. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
