WSJ: Nortel considering unit sales

The Wall Street Journal reports that Nortel Networks is considering sales of its wireless network equipment and enterprise network units, two large pieces of its business. If the company chooses to sell the units, its plans to restructure and emerge from bankruptcy protection, rather than liquidate, could change. As the WSJ story states, "Bankruptcy-law process requires Nortel to seek the most value for creditors, which include the holders of $4.5 billion in debt, ex-employees owed severance and retired managers whose pensions were paid by the company's operating funds."

That means a bold plan to emerge leaner, but essentially intact, might not be in the cards, especially if other companies are willing to pay a high enough price for some Nortel units. The story speculates on some of the possible buyers, but also notes that nothing is certain at this point.

Nortel has been promising more details about its plans to emerge from bankruptcy in the next several weeks, so it will be interesting to see if it waits longer to outline its plans.

For more:
- The Wall Street Journal has this story

Related articles
Nortel recently posted a $2.1 billion quarterly loss
Nortel's bankruptcy protection period was extended to May 1

Suggested Articles

On the heels of TalkTalk shareholders approving the deal to sell FibreNation to CityFibre, CityFibre is now targeting 8 million premises in the U.K.

Cisco's Kevin Wollenweber has turned into a COVID-19 sleuth of sorts over the past few weeks as he tracks the virus' impact on networks.

The coronavirus pandemic has led to organizations of all sizes sending their employees home for work, but will they want to return to the office?