x
Optical/IP

Nortel Files for Bankruptcy Protection

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

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nodak 12/5/2012 | 4:13:37 PM
re: Nortel Files for Bankruptcy Protection Actually Corvis was threatening to sue Light Reading if they did not provide the name because of the proprietary information he was posting. He (I worked with him) wound up getting fired from Corvis because of it.
Sisyphus 12/5/2012 | 4:13:46 PM
re: Nortel Files for Bankruptcy Protection Indeed. No one wants to see the people get hurt, especially when we know that a lot of these people are good engineers that the industry has a need for - but of course now is exactly the time when we are going though a downturn that makes it hard for anyone, no matter how talented, land an equivalent job elsewhere after a long career.

My heart and best wishes go out to those affected. I truly wish that you persevere and find fulfilling employment elsewhere.

Best of luck, guys (and gals)... we are rooting for you!
timberall 12/5/2012 | 4:13:47 PM
re: Nortel Files for Bankruptcy Protection I was given 2 months advance notice back. Some of the people letgo with me found something internal(presumably through internal connections).

this after we were all reassured that we were all safe by my immediate manager in a really boisterous manner. that was the ~13 th wave of workforce reduction.

But the canadian Employment Insurance is very irritating. Though i contributed money in that kitty for 7 odd years they said because i got a package have to wait 6 months or so. And then i made the decision to do higher studies and then the EI people said you are doign studies volutarily and hence NO EI. What a crock...

timberall 12/5/2012 | 4:13:47 PM
re: Nortel Files for Bankruptcy Protection I was given 2 months advance notice back. Some of the people letgo with me found something internal(presumably through internal connections).

this after we were all reassured that we were all safe by my immediate manager in a really boisterous manner. that was the ~13 th wave of workforce reduction.

bitdropper 12/5/2012 | 4:13:47 PM
re: Nortel Files for Bankruptcy Protection You, and other employees that want to get your story out, should get in touch with our editors.

Your PR reps may not give us access to top execs and, if they don't, I'd like to present at least one point of view that takes into account what's happening inside the company, how employees are reacting, etc.

Cheers,
[email protected]

--------------------------------------------------------------------

Just a word of warning to Norties.

Several years ago, a Corvis exec using the screen name of "opticalguy" (I think that was it) provided inside info on these boards. LR ended up publishing his real name in what they claimed was in the interest of journalistic credibility. Many of us who severely chastised LR for this action had our posts deleted (and as additional punishment...our bananas demoted). :-)

Be very careful what you post.
Pete Baldwin 12/5/2012 | 4:13:47 PM
re: Nortel Files for Bankruptcy Protection timberall -
I think you're right. There's word about this in the Globe & Mail:

http://www.theglobeandmail.com...

OTOH, I've also heard word of someone in Canada who's just gotten a layoff notice -- with 13 months' advance notice. So while there may be no severance, he's got a year to find another job. (This is second-hand, unconfirmed, and it's only one data point -- anyone know if it's standard practice in Canada?)
Belzebutt 12/5/2012 | 4:13:48 PM
re: Nortel Files for Bankruptcy Protection I remember also when Nortel ditched the access division. xDSL, or any form access was starting to take off all over the world. It was right when they decided to sell this division, that access took off.

I see lots of people here have skewed memories. Yeah, I remember IMAS and that other access stuff we had. None of it worked reliably, and by the time "access took off" these products didn't get any market traction because they simply weren't far enough in development and maturity. As far as I can tell, most of the bitter people here worked on what they thought was the flagship product, the one on whose success the company depended on. That's what most people who work on big projects start to believe. Then when they're let go, they feel that the company can't go on without them and that their product cancellation is due to politics and bad decisions.

If you scan through the posts in this thread you see lots of conflicting opinions on the decisions on the company made. It's the DMS people's fault. It's the managers' fault. It's the execs' fault. It was cancelling product X that hurt us. It was cancelling product Y. It was spending too much money on product Z. Just goes to show that there are no easy answers.
bitdropper 12/5/2012 | 4:13:48 PM
re: Nortel Files for Bankruptcy Protection Jesus, right angle turn ? It has been years since I heard this. :)
-----------------------------------------------

I too remember JRs "right angle turn". What none of realized at the time though, was that the angle was from horizontal to vertical. :-)
timberall 12/5/2012 | 4:13:48 PM
re: Nortel Files for Bankruptcy Protection * that for those still standing there is no severance package or extended health coverage anymore.
* people who were laid off before chapter 11 had their severance package cancelled this week..

Again it is via grapevine...
melao 12/5/2012 | 4:13:51 PM
re: Nortel Files for Bankruptcy Protection I remember also when Nortel ditched the access division. xDSL, or any form access was starting to take off all over the world. It was right when they decided to sell this division, that access took off. They believed that Optical revenues would be enough. Later they believed that NGN would be enough, later enterprise telephony. Later well, chapter 11.
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