It was a valiant effort to try and restructure, but struggling gear-maker Nortel Networks has seen the writing on the wall. It said late Friday that it will parcel out its remaining assets to buyers.
The decision effectively ends Nortel’s bankruptcy court restructuring efforts. It was clear, it said, that the restructuring would not result in any value or equity for shareholders.
The hoped-for outcome of liquidation, according to CEO Mike Zafirovski, is for Nortel’s remaining business units to be sold to buyers that will keep the intellectual property, customer base and employee headcount as intact as possible.
“This will ensure Nortel’s strong assets – technologies, customer relationships and employees continue to play an important role in driving the future of communications,” he said in a statement. “Customers have demonstrated consistent support for our products and services, and we want to ensure they continue to benefit from Nortel’s technology and know-how.”
He added, “It is important to provide our employees with a clear sense of direction around their future and potential opportunities with the new companies.”
The Tortonto-based vendor said that it’s in “advanced” discussions to sell off its operating divisions, but that it is assessing other restructuring alternatives in case it’s unable to “maximize value” through sales.
Late Friday it agreed to accept a $650 million bid by Nokia Siemens Networks for its wireless division, which is the most lucrative of its carrier businesses.
Nortel has applied to delist its common shares and the NNL preferred shares from trading on the Toronto Stock Exchange, commencing before the opening of trading on Monday, June 22.