[nik's note: this is big news but it's been expected for some time now... Nortel has such a large footprint it's hard to see how it could have all gone so horribly wrong. Can Nortel make a last dicth attempt to put its house in order? And even if it can, what is thing going to mean for its product roadmaps and internal investment? I think we all wait with baited breath...]
Nortel Networks, one of the leading sponsors of the 2012 London Olympics, filed for Chapter 11 bankruptcy protection yesterday, leaving organisers in the dark about the telecoms equipment maker’s participation in the Games.
Nortel, one of Canada’s biggest companies, is due to supply BT with the equipment to provide internet access, call centres and fixed phones for the Olympic site. In a filing with a Delaware bankruptcy court yesterday, Nortel said that it needed a break from its creditors to reorganise the company. It had been due to make a $107 million (£73.3 million) interest payment on loans today.
The Canadian Government immediately promised C$30 million (£16.5 million) in short-term financing for Nortel, which employs 32,000 people, mainly in Ottawa.
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Sunday, June 28, 2009 at 5:30PM Tweet