Stardust Global Ventures

While I’ve been predicting this for some time now, it’s sad news really – bankruptcy for Nortel.

Nortel Commences Comprehensive Business and Financial Restructuring

• Company to Utilize CCAA and Chapter 11 Processes
• Operations Expected to Continue Without Interruption
• Sufficient Cash on Hand to Fund Ongoing Operations
• Affiliates in Asia, including LG Nortel, and in the Caribbean and Latin America, and Nortel Government Solutions (NGS) to Continue in Ordinary Course of Business and Are Not Subject to These Proceedings

TORONTO – Nortel* Networks Corporation [NYSE/TSX: NT] announced that it, Nortel Networks Limited (“NNL”) and certain of its other Canadian subsidiaries will seek creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in Canada. As well, certain of the Company’s U.S. subsidiaries, including Nortel Networks Inc. and Nortel Networks Capital Corporation, have filed voluntary petitions in the United States under Chapter 11 of the U.S. Bankruptcy Code, and certain of the Company’s EMEA** subsidiaries are expected to make consequential filings in Europe. The Company’s normal day-to-day operations are expected to continue without interruption. Nortel remains 100% focused on serving customers worldwide through continued R&D investments and support of its product portfolio to fulfill customer needs.
[Read full release at Nortel]

I’ve been critical and at time harsh about Nortel’s chances in the past few months. That comes from history dating back to the acquisition of Bay Networks many years ago. It was a poorly executed acquisition and Nortel failed dismally at integrating the one company who had a shot at truly giving Cisco a run for their money in the day. Sure we’ve seen a couple of other powerhouse networking companies (notably Juniper and Redback) come on the scene since, but with Nortel in th emix, Bay Networks could have really done some fabulous things, and they had great technology solutions.

Since then, Nortel has fumbled acquisitions and failed to find their own identity for years. It’s a shame to see one of the real powerhouse companies in the industry flounder and fall like this. And it can only be attributed to the leadership at Nortel for the past ten years. Their technology solutions remains solid and viable.

This is what happens when a company loses its identity and can’t find a way out.

Technorati Tags: Nortel, bankruptcy, CHapter 11, unified communications, telecommunications