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.
- The Wall Street Journal has this story
Nortel recently posted a $2.1 billion quarterly loss
Nortel's bankruptcy protection period was extended to May 1