Nortel looks to reorganize
By James Carbone -- Purchasing, 2/12/2009 2:00:00 AM
Nortel networks has filed for Chapter 11 bankruptcy protection as the recession has resulted in less demand for the telecommunications equipment it builds.
The Toronto-based company filed for bankruptcy in Delaware. According to the court filing, Nortel's major creditor is Bank of New York Mellon, with claims valued at nearly $4 billion.
Nortel has competed fiercely with Alcatel-Lucent in North America and Europe and with as Huawei Technologies in Asia. The company has suffered as many corporations have cut back on spending for the equipment that Nortel builds.
Nortel had issued a warning last month that because of poor economic conditions, its cash position and liquidity were deteriorating.
In November, it reported a $3.4 billion third-quarter loss and announced 1,300 layoffs, or about 5% of its workforce. It also said it would freeze salary increases.
Enter the buyers' market
03/12/2009Nortel files for Chapter 11
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