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Nortel's final gambit

So it has come, finally, to this: Nortel files for bankruptcy protection.
The board of directors met last night, looked at all the options, and swallowed hard. Rather make a $107-million interest payment on its debt, the company will restructure.
Will this be the final chapter of the Great Calamity, or the move that as CEO Mike Zafirovski puts Nortel (TSX: NT)“on a sound financial footing once and for all. In an effort to prop up what remains of Nortel’s business, Zafirovski writes in a letter posted to the website, “Nortel is still very much in business and our commitment to customers remains unwavering. We will continue to invest in leading edge R&D to deliver the value our customers expect from us.”
Will customers, sales prospects and suppliers buy it? Will employees? Or will this only confirm the sentiment that Nortel is not a viable businesss, and accelerate its decline?
I am confident that the actions were announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success,” Zafirovski said in the statement. “I want to reaffirm Nortels dedication to delivering world-class solutions and services to customers.
Just what solutions and services will continue under the Nortel banneror if, in fact, the Nortel banner disappears completelyis a matter of speculation. Its Metro Ethernet Networking division has been on the block for months as the economy further deteriorated, but nothing has come to pass. (One of the rumoured bidders, China’s Huawei, comes with a host of national security concerns for U.S. and Canada.) Perhaps this will move things forward.
Trading in Nortel shares have been halted and the TSXand New York Stock Exchanges are likely to delist the stock. For investors, those who were still clinging, this is the end.