Light Reading
Nortel's share price plummets as it files for Chapter 11 protection from its creditors in Delaware bankruptcy court

Nortel Files for Bankruptcy Protection

Ray Le Maistre
1/14/2009
50%
50%

Nortel Networks Ltd. has filed for Chapter 11 protection in the Delaware bankruptcy court in an effort to sort out its financial woes.

In a statement emailed to Light Reading the company noted: "Nortel today announced that it is filing for creditor protection in the US, Canada and EMEA. The company intends to emerge from this process as a more focused, financially sound and competitive Company. This is a step towards a global reorganisation of Nortel and the Company acted now because we have sufficient liquidity to both run our operations and restructure our business."

The news, though shocking, will hardly come as a major surprise as all the signs were pointing toward such an eventuality. (See Nortel's Zero Hour?, Nortel's Not Bankrupt Yet, Crunch Time for Nortel, and Nortel Culls 1,300 Jobs, Loses $3.4B.)

And, again not surprisingly, the news hammered Nortel's stock in pre-market trading, sending it down $0.25, more than 77 percent, to just $0.05.

There will be more on this story as details are announced.

— Ray Le Maistre, International News Editor, Light Reading

(66)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 7   >   >>
Stevery
50%
50%
Stevery,
User Rank: Light Beer
12/5/2012 | 4:14:19 PM
re: Nortel Files for Bankruptcy Protection
The only question in my head: Who's next?
HomerJ
50%
50%
HomerJ,
User Rank: Light Beer
12/5/2012 | 4:14:19 PM
re: Nortel Files for Bankruptcy Protection
I hope those Nortel people like the Kung Pao chicken. They will be working for their new Chinese masters soon enough.
freetoair
50%
50%
freetoair,
User Rank: Light Beer
12/5/2012 | 4:14:18 PM
re: Nortel Files for Bankruptcy Protection
is there even a Canadian in the mgmt team?
laserboy
50%
50%
laserboy,
User Rank: Light Beer
12/5/2012 | 4:14:18 PM
re: Nortel Files for Bankruptcy Protection
HomerJ, with comments like your last one, you name is a perfect fit
Stevery
50%
50%
Stevery,
User Rank: Light Beer
12/5/2012 | 4:14:18 PM
re: Nortel Files for Bankruptcy Protection
I hope those Nortel people like the Kung Pao chicken. They will be working for their new Chinese masters soon enough.

Perhaps. But you should notice that Nortel is about to hammer a whole lot of their weak creditors (like retirees). They have an opportunity to forge an improved cost structure, which non-Ch 11 folks will not be able to emulate.

If there's going to be a wave of reorgs, the guy who does it first is at an advantage. Whether our canuck management friends are able to capitalize on this advantage is, of course, the question.
cw.774
50%
50%
cw.774,
User Rank: Light Beer
12/5/2012 | 4:14:17 PM
re: Nortel Files for Bankruptcy Protection
Well how about the mgmt team known as the Canadian Gov't?
fgoldstein
50%
50%
fgoldstein,
User Rank: Light Sabre
12/5/2012 | 4:14:17 PM
re: Nortel Files for Bankruptcy Protection
homerj, what about kimchee?
Lite Rock
50%
50%
Lite Rock,
User Rank: Light Beer
12/5/2012 | 4:14:16 PM
re: Nortel Files for Bankruptcy Protection
Well Nortel has been notorious for their pompous attitudes, ruthless penny pinching with suppliers, contractors, and employees. Now it continues with the further shafting of creditors, suppliers, employees and retirees.

Who's next? I say Sprint is next for Bankrupcy or aquisition. But in the long run does it really matter?
bollocks187
50%
50%
bollocks187,
User Rank: Light Beer
12/5/2012 | 4:14:15 PM
re: Nortel Files for Bankruptcy Protection
once again - someone in Canada fix this once proud Company.
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:14:14 PM
re: Nortel Files for Bankruptcy Protection
Canadian government pledged $30M and (probably more importantly) a helping hand in talking to the banks about post-filing financing:

http://www.lightreading.com/do...

Not a bailout ($30M, for a company that has $2.4B in cash already, seems like a token), but it sounds like they're working to make sure "Nortel," in some form, lives on.

I might be interpreting this wrong, though - anyone else have any thoughts?
Page 1 / 7   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Razorsight Expert's Advice on Real-Time Analytics

11|27|14   |   1:43   |   (0) comments


Razorsight's powerful cloud-based Predictive Analytics solutions are used by the world's leading communications and media brands to drive smarter decisions, enable faster actions and optimize outcomes. Get expert advice.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Why 5G Is a Different Beast
Robert Clark, 11/26/2014
New Juniper CEO Can Be Thankful for $14.5M
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2014
Like Us on Facebook
Twitter Feed