Posted on 03/12/2009 4:42:48 AM PDT by Loyalist
In a move that would end one of Canada's oldest and greatest business sagas, Nortel Networks Corp. is looking to break itself up by selling off major divisions rather than trying to rebuild itself under bankruptcy protection.
The company is fielding offers from potential buyers who are interested in purchasing both its wireless-gear business as well as a separate division that manufactures office telecom equipment. Together, those two divisions posted $6.7-billion in revenue last year, or more than half the company's sales.
Any plans to sell the wireless-equipment business, which generates the bulk of the company's sales, would make it difficult for Nortel to emerge from bankruptcy protection as a viable company.
....
Although Nortel executives once hoped to use bankruptcy protection as a way to negotiate fresh financing and rebuild the once-mighty company, the ongoing global financial crisis has effectively dashed hopes of keeping the company intact.
Debtor-in-possession financing — the lifeblood of most bankruptcy restructurings — has all but disappeared this year.
"Banks aren't exactly lining up to finance a purchase of Nortel assets," a banking source said.
(Excerpt) Read more at business.theglobeandmail.com ...
Get off a sinking boat, but it will be available for some flunky to claim it for pennies and operate it as a junker ... not caring about quality or service.
All your network are belong to CISCO.
Maybe the Telco switch division will survive, but the SMB stuff is gone, gone, gone.
L
My company made the decision to standardize on Nortel for telcom almost 10 years ago. We’ve had a good run with their products. Their small office products like the BCM50 are perfect for most of our manufacturing sites, low cost, and have proven trouble-free.
It’s a shame this is happening. We really don’t want to go Avaya (great products, but too expensive), and our pilot Cisco VOIP implementation went so badly (it was the vendor, not the equipment) that I’m not even allowed to consider them for future VOIP implementations.
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