Oppenheimer Drops Another Bomb on Nortel

We’ve all heard about the problems at Nortel (NT). And it seems like most of talk has been about the vendor’s troubles and efforts around its service provider business. But now comes commentary from Oppenheimer & Co. (OPY) that it is in fact Nortel’s enterprise business that’s most in peril.

The reported reasoning behind this argument is that if Nortel files Chapter 11, its channel partners on the enterprise side could jump ship, leaving Nortel without a distribution mechanism to get its products to customers.

Nortel earlier this year announced plans to sell off its prized Metro Ethernet Networks division in an effort to raise funds. According to press reports, the company has seen interest from a handful of prospective buyers, but is unlikely to sell MEN as fast or for as much as it had hoped.

The fall has been a long one for Nortel, which was once among the top communications vendors. Now the company is considering bankruptcy and faces delisting if it can’t bring its stock above $1.

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