Nortel Networks Corp. (NRTLQ) is just about done. This morning came the final announcement which we have been expecting for longer than imaginable. We named CEO Mike Zafirovski as one of our Top CEOs To Go for 2009, but that was back when there was at least some value left in the company. We started hearing rumors last week that Zafirovski was on the way out, and this morning it was confirmed.
The statement was simple: “Nortel Board of Directors and President & CEO Mike Zafirovski conclude company has reached natural transition point for reduction in the Board size and for Mike Zafirovski to step down.”
Amazingly, the unsecured creditors were even complimentary in the release. “As a substantial creditor and Nortel’s largest supplier, I appreciate his efforts,” said Mike McNamara, CEO of Flextronics (NASDAQ:FLEX), chair of Nortel’s Official Committee of Unsecured Creditors, said “…As a substantial creditor and Nortel’s largest supplier, I appreciate his efforts.”
Also effective today, the Boards of Directors of NNC and Nortel Networks Limited (NNL) will reduce from nine to three members: John A. MacNaughton, Jalynn H. Bennett and David Richardson, with Mr. Richardson serving as Chairperson. These individuals will also serve as members of NNC’s and NNL’s audit committees.
Nortel also reported its results. But the company is in bankruptcy and there is essentially nothing left here for investors. As for the rest, perhaps the answer is “Who cares?”… Nortel may ultimately have a fraction of the company surviving when the entire sale and divestiture process is complete. But we still believe the name of the company is no No-Tel.
JON C. OGG
AUGUST 10, 2009
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