Ethernet equipment

Nortel Creditor Preps Rescue Plan

The likelihood of a creditor-led bid for control of bankrupt vendor Nortel Networks Ltd. increased during the weekend as various media reports suggested MatlinPatterson Global Advisers, a venture capital firm that specializes in "distressed assets," is actively seeking partners for a recapitalization of the Canadian giant.

The prospect of a bid for the whole of Nortel by creditors disgruntled at the current asset sale process first emerged last week. (See Nortel: Think Big, Nortel Creditors Cry Foul, and Nortel: It's All Up for Sale.)

Now, according to this Reuters report, MatlinPatterson is holding talks with other creditors in an effort to build a consortium of backers that could make a bid for Nortel before July 21, the deadline set for the auction of Nortel's CDMA and LTE (Long Term Evolution) access assets. (See NSN Picks at Nortel's Mobile Bones , How NSN Is Funding Its Nortel Bid, and Will Others Bid for Nortel's Wireless Assets? )

The pace of developments surrounding Nortel's current financial predicament has accelerated in the past few weeks. Here's a snapshot of the recent coverage from Light Reading and Unstrung:

— Ray Le Maistre, International News Editor, Light Reading

Hanover_Fist 12/5/2012 | 4:01:21 PM
re: Nortel Creditor Preps Rescue Plan

It's bad that you can't hear the "babeep...babeep....babeep...." of the heart monitoring machinery due to the incessent drooling and lip smaking of the organ harvesters circling the near-death, comatose Nortel as the doctor's get ready to pull the plug on the life-support gear keeping this dead body alive.

Business as usual - ca-ching ca-ching!  Ooooooooohhhhh...we're gonna strip this puppy clean and leave nothing but the bones...

Muawahahahahaha...we'll laugh all the way to the bank on this one and leave those stupid Nortel customers high and dry!

inauniversefarfaraway 12/5/2012 | 4:01:15 PM
re: Nortel Creditor Preps Rescue Plan Unending laughs, with a continuous supply of "crown" jewels, Nortel manages to attract one piecemeal acquirer and one... recedivist.
These guys have a 10% stake and want to go for 100% using other people's money, that is a bit more than double or nothing. In addition, they're late, short on time and unprepared, what kind of funding are they looking for? Must be "smart" money, for sure.
Round 2: Ding! Ding!
Sign In