Nortel Networks Corp., North America’s biggest maker of telephone equipment, filed for bankruptcy protection in the U.S., a victim of the global credit crunch and declining sales.Nortel, based in Toronto, had more than $1 billion in assets and debt, according to a Chapter 11 filing of its U.S. subsidiary today in Wilmington, Delaware. Fourteen affiliates of Nortel’s financing unit are seeking similar protection in Delaware. Five units filed for bankruptcy there under Chapter 15. Nortel said Canadian affiliates also will seek protection.
“It’s the end of a saga,” said Benoit Lalonde, vice president of fixed income at Laurentian Bank Securities, a unit of Canada’s seventh-largest bank. Laurentian doesn’t own Nortel debt. “Nortel is a corpse awaiting burial. I’m sad to see it happen but the tears were shed many months ago.”
Wow -- I remember when Nortel was a hot stock that could only go up......
2 comments:
Nortel also issued options as employee recruitment incentives when their stock was over $100/share. After that, it was all downhill after that. A friend who was looking forward to a more comfortable retirement based on her options soon realized that the options weren't wroth the paper they were printed on.
I told her that this type of thing was typical in Silicon Valley. I've got enough worthless stock certificates to paper the walls in my bathroom.
Time to lay Nortel down to rest. Mismanagement and accounting problems, its over.
http://www.stockjunction.com/index.php?option=com_myblog&show=Nortel-A-Dog-With-Flees-Now-Terminal-Cancer-.html
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