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Market: TSX
Sector: Telecommunications Equipment
EPIC: NT
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Nortel Networks
www.nortel.com

Nortel Networks delivers communications capabilities for both service provider and enterprise networks, support multimedia and business-critical applications.

Nortel's technologies are designed to help eliminate barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world.

Full Nortel Networks profile here
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Nortel Networks files for protection from its creditors

14th Jan 2009, 12:00 am

Shares in Nortel Networks (TSX & NYSE: NT) were suspended on the TSX moments before the company confirmed that it had filed for protection from its creditors in the United States and Canada under Chapter 11 and the Companies Creditors Arrangement Act respectively.


Nortel said that its affiliates in Asia, Latin America, the Caribbean, and Nortel Government Solutions were not part of the filings. The group's subsidiary's in Europe would be affected however, and would be submitting fillings shortly.


By filing for protection, Nortel will be able to continue to trade on a day-to-day level while the group as a whole attempts to clear its debt burden through restructuring and disposals.


Nortel said it had decided to take action now while it still had $2.4 billion of cash.


"Nortel must be put on a sound financial footing once and for all," said Nortel President and CEO Mike Zafirovski. "These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be. I am confident that the actions we're announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success. I want to reaffirm Nortel's dedication to delivering world-class solutions and services to customers."
 
Nortel Networks provides service provider and enterprise networks, support multimedia and business critical applications in more than 150 countries.

Shares in Nortel Networks closed down almost 25% in trading yesterday in Toronto.  The shares were still suspended at 9:40am.

 

 

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