Nortel: New Business Plan on the Way, Suppliers Unhappy

Bankrupt Nortel Networks Corp. (NT) will detail its new business plan within the next few weeks and show investors how it will trim expenses to get itself back on track.

That’s the first step in crafting the reorganization plan, which will take a few months, Reuters reported yesterday from Mobile World Congress in Barcelona.

Nortel last week won court permission to extend its bankruptcy proceedings to May 1; the extra time insulates Nortel from creditors’ demands.

To be sure, suppliers are not happy with the telecom equipment maker. JDS Uniphase Corp. (JDSU), for one, is complaining in court documents the three-month delay is too long and that Nortel isn’t being transparent about the bankruptcy process. Andrew LLC echoed those concerns, saying there’s no balance between the rights it’s giving up as a supplier of a bankrupt company and the benefits it would receive, according to the Toronto Star.

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