Nortel Networks filed for Chapter 11

Nortel Networks filed for Chapter 11
It looks like Nortel Networks is the latest company to have fallen prey to the global economic crisis. The once powerful North American phone equipment maker has filed for Chapter 11 bankruptcy protection in the US, hoping to gain some time in order to reorganize its business. For years now, Nortel and its affiliates have had a severe competition in the face of low-cost companies and rivals. However, Nortel representatives have stated that their business has been under intense pressure, due to the way that the industry has changed.

Anyway, the company still has a chance to reorganize its business in time, having in mind that the Canadian government has pledged to provide Nortel with up to C$30 million in short-term financing.

source: ITWeb

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