Nortel Files For Bankruptcy Protection
Telco equipment company Nortel Networks has filed for Chapter 11 bankruptcy protection in its native Canada and in the U.S. The Toronto company’s affiliates in Asia, including LG (SEO: 066570) Nortel and in the Caribbean and Latin America, are not involved in the bankruptcy filings and will continue to operate normally. Nortel says that it has been trying to turn its financial situation around since 2005. Although it claims to have made some progress, the credit crunch and wider economic meltdown have certainly erased any progress. Release
—Bloomberg: In fact, Nortel lost almost $7 billion since Mike Zafirovski took the reigns nearly four years ago.
Revenues have fallen since Nortel sold its high-speed mobile-phone unit to Alcatel for $320 million in 2006, as it sought to shift its concentration to WiMax. At the end of Q3, Nortel’s debt stood at $6.3 billion and it has $1 billion in bonds that come due in 2011. Total liabilities amounted to almost $12 billion.
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Comments (1)
Jan 14, 2009 1:57 PM
I am seriously getting shocks witnessing major IT/Telecom companies crying for money either doing frauds like satyam or filing bankruptcy.
I think watching the whole series of the events it seems as if the leadership is not able to manage things well , this is applicable to all companies be it nortel,satyam,ford…....
I think its the time to look to strengthen our financial status and develop a mechanism that so that we are able to grow in terms of figures but it becomes imp that we are able to maintain that growth for years to come.
It looksLike a House Build from a pack of cards, moment one fell every one is falling…..
When we are going to have afull stop on this .. .when we wil lsee smile on everyone’s face….
Mr.Barack Obama, I have a full confidence on you, as an Indian I was 100% sure that you will win, Now whole of the world is waiting to see your magic….. Rescue the World , else we will have devstating results…....
I belive and bank on you completely.
Kunal