This was before single digit growth was reduced to 4% decline. They need to sell a key part of their business for layoffs.

With an area accounting for almost all of their earnings in sharp decline (CDMA), a reduction in orders by 25%

The company's cash position decreased $461-million in the first half of the year to $3.07-billion. In the current quarter, Nortel said it could burn through up to another $400-million, shrinking cash reserves to $2.6-billion.

For the full 12-month period beginning July 1 this year, cash requirements will be $979-million, Nortel said in a filing. The burden will be heavier as losses mount. The company lost $251-million in the first six months of the year.

From the $6's July 15th to trading in the 2's today a lot has gone down to further reveal trend and outlook.

Pre extreme reverse split pricing when they neared folding at 43 cents last time, today's 26 cents speaks volumes.

Perhaps S&P might adjust in light of more current events since July. Last August it traded at $20!

Finally some one is brave enough to politely indicate they can meet a liquidity crisis and insolvency forcing them into bankruptcy in the not too distant future:
“debt rating agency raised the prospect of the network equipment maker failing to generate enough cash from daily operations to pay its debt down the road.”

What will they do if they do not sell MENs to pay for further layoffs? And even if they do, how much longer will they last? See the trend?

July 15th: D&BRS Upgrades Nortel Debt Trend
http://www.allaboutnortel.com/2008/07/15/dbrs-u…