Nortel Networks Files for Bankruptcy

[DainBramaged]

Technology giant Nortel Networks Corp. filed for bankruptcy protection in Canada and the U.S. on Wednesday, the first major technology company to file for protection during the global downturn.

North America's biggest maker of telecommunications equipment has been dealing with a sharp drop in orders from phone company clients. It filed for court protection in Delaware on Wednesday, a day before the firm is due to repay a US$107 million interest debt on bonds.
Creditor protection would give the company more opportunities to explore restructuring options or sell off some of its assets.

The Toronto-based company said in a release that it had been in the process of a turnaround since late 2005 but added that "the global financial crisis and recession have compounded Nortel's financial challenges and directly impacted its ability to complete this transformation."

Nortel stock, which once traded at more than CA$1,200 a share on a pre-split basis during the tech bubble, closed Tuesday at 38.5 Canadian cents a share on Canada's main stock exchange.

Nortel once had more 95,000 employees and a market capitalization of CA$366 billion ($297 billion) on the Toronto Stock Exchange. It closed Tuesday worth just CA$191 million ($155 million).

The Toronto Stock Exchange has halted trading of Nortel's shares. Nortel stock fell 30 percent in pre-market trading.

http://money.aol.com/news/articles/_a/bbdp/nortel-networks-files-for-bankruptcy/306036

[SoCalDem]

1. Perhaps all the corporations & banks just need a "come clean day"

open all their books, and show everyone how little they really have and just get it over with..

We got out 401 k statement today, and we lost $16K since the last one..and our house "value" has dropped from $385K to $180K..

This dribble-effect is what's killing the economy..

All the "little fibs" are making it worse than to just tell the whole awful truth, and sweep all the trash out into the gutter, for the clean up guys to haul it away..

Then start over with realistic business plans, and downscaled reality-based commerce again..

We used to operate this way, and we can again...BUT the whiz-kid business school genius types have to be kept away from any positions of power..