Nortel Networks Corporation (OTCBB: NRTLQ) is still alive. Sort of. The bankrupt telecom and communications networking equipment provider has announced that the company, its Nortel Networks Limited, and the other Canadian subsidiaries that filed for creditor protection under the Companies’ Creditors Arrangement Act, have all obtained an order from the Ontario Superior Court of Justice a stay of proceedings that was previously granted by the Canadian Court.
This further extends the period out to October 30, 2009. The extension also allows the Nortel companies to continue to have discussions with interested parties for the sale of its businesses. Further, it allows the companies to continue to assess other restructuring alternatives if it is unable to maximize value through sales and file a plan of arrangement.
The comical issue in this tragedy is the “maximize value”… How many bankruptcies maximize value?
Nortel has essentially been given a last survival line. That line will only determine if creditors will have a dime or a dime and a penny. In the end, its name is still going to be No-Tel.
JON C. OGG
JULY 30, 2009
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