Nortel sales net two billion dollars


Nortel sales net two billion dollars

Alex Scroxton
The final dismantling of Nortel could take close to two years, the firm announced today, as it revealed that it has so far generated more than $2bn in net proceeds from the sale of its various business units, with another $1bn expected imminently from currently ongoing sales.

The firm today issued a statement providing an update on its creditor protection proceedings, in which it said it has so far preserved 13,000 jobs through sales, with approximately 2,300 heads remaining in Nortel's NBS and Corporate Group.

Nortel initially filed for protection and went into administration in January 2009 with the hope that a quick restructure and a bit of polish here and there would allow it to keep going.

However, by the mid-point of last year it became painfully apparent that this strategy was bunk, and Nortel proceeded to begin touting its various business units for sale and CEO Mike Zafirovski was given the heave-ho.

"The board and management team recognise the very difficult circumstances of the numerous and varying stakeholders of Nortel," said chairman David Richardson. "We have been and continue to be focused on maximising the value of the company's assets and securing the best possible outcome for our creditors, from employee groups to bondholders."

Two remaining units, Corporate Group and Nortel Business Services, now form the rump of the once great comms vendor.

Corporate Group is currently focused on supervising the remaining sales and maximising the value of the firm's IP. Nortel Business Services, meanwhile, has taken responsibility for customer maintenance and network SLAs, while also providing expertise in finance, supply chain management, IT, R&D, HR and real estate for the purchasers of the other Nortel units over the next year or so.

Nortel added that it is currently working on an employee plan designed to retain its remaining personnel for the duration of the clear-out, which is being funded predominantly by the proceeds from its auctions.

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