Nortel's New Chapter
But news, reported by The Wall Street Journal, that the Canadian vendor is taking legal advice on potential bankruptcy proceedings will surely only dent customer, supplier, and partner confidence in the company's ability to weather the current economic storm.
Nortel recently announced a new restructuring plan designed to bring financial stability to a company that is still generating billions in revenues each quarter. (See Nortel Culls 1,300 Jobs, Loses $3.4B.)
But the global tightening of belts has clearly left the company's management with some lingering doubts, and so, according to the WSJ report, Nortel is taking advice on bankruptcy protection from creditors should its financial fortunes fail to improve. (See Crunch Time for Nortel.)
And there's an air of desperation about the company, which is pumping out press releases at an increasing rate and even sending email reminders to journalists pointing out how carriers are still showing faith in the company.
2009 is going to be a tough year for everyone -- it could be especially hard on Nortel.
— Ray Le Maistre, International News Editor, Light Reading