Mike Z.’s Newest E-Mail

By Mark Evans | Published: March 12, 2009

Mike Z.
Team Nortel: As you may have seen in The Wall Street Journal this morning, the media continue to speculate on our current situation. Although this is one more of the many stories that continue to be written about us, I want to take a moment to put their commentary into perspective.

Typically, we do not comment on rumors in the media, and I will not do it here either. However, I want to speak to you directly about our status and plans, so you can have the latest actual information. Let me reiterate that our process remains the same one Pavi and I discussed at the last global GIS and on calls with our ELT.

We have made every effort to stabilize our business, and in general, this is being accomplished with strong support by our customers and committed efforts by you, the Nortel employees. We are continuing to serve our customers well, which is in the best interest of all of us. And, we are now developing a business plan to present to creditors and the courts that will determine our future.

As we shared with you on February 25, we expect this plan to be ready internally in the late March timeframe, with creditor reviews in later March/April. The restructuring of Nortel is a complex process that requires thoughtful analysis of the various possible paths open to us. As I have said before – and which the Journal story also emphasizes – there is much still to be done and decided. As soon as we are able to share more information with you – including our go-forward plan – I assure you, we will.

Most importantly, we must continue to focus on customers as we go through this process. We must continue to tell them that Nortel is open for business. And, we must continue to focus on the work at hand. That is the only way forward, and thank you for the strong efforts and results on these fronts since we filed.

As always, thank you for all you are doing for Nortel and our customers.

Mike

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  • gone2moro

    How does one respond to a trite email like this?

    … Liar, liar pants on fire?

  • tryn2makealivin

    So what are your thoughts? Is Z and the Hacker secretly leaking the info to WSJ to drive bids or is there someone high enough that shares the love for those two like many here do that is leaking?

  • CommonCents

    Wasn't there an email dismissing a Bankruptcy article by the WSJ a month before it happened. There is a pretty good track record of the accuracy of these articles.

  • EmployeInChina

    he said nothing!

    Mike Z 的英文书写能力一流，全是吹牛，嘴里喊着激昂的口号，背地里不知道干着什么！！
    爷爷不陪你玩了，爷爷去NSN了。

  • 20yrsNT

    Once again the typical blah, blah, blah!! Does he really believe that he has an ounce of credbility with any of us remaining, or departed for that matter???

  • AnotherSlave

    How much time will be spent today explaining away this embarrassment?

  • Asset_Number_XXX

    He didn't lie because – as someone already mentioned – he said nothing.
    I know who I'd believe if I'd hear conflicting stories from M.Z and WSJ.

  • angermanagement

    We're not going to comment on media stories, except to comment on this one that we're not going to comment except to say that we have everything under control and please get back to work.

  • qwertyuio

    Got it. The selling is going to happen in April.

  • longgone

    Zschitt

  • Baudelaire

    Thank you for all you are doing for All about Nortel

  • Another_Nortel_Watcher

    Here is an analogy for the Nortel situation up to the point we're at today:

    - A large plane is flying across the Pacific, it left the West coast full of Nortel BoD members, shareholders, employees, and Mike Z and his cronies.
    - Part of the way through the journey, it was revealed that the pilot either miscalculated the fuel load or he lied about it. Without waiting for an investigation, the BoD members threw the flight crew off the plane.
    - The BoD appointed Bill Owens to act as pilot and fly the plane because he had worn a uniform before.
    - Owens left the plane on auto pilot and sat in the pilot's seat looking important. He checked the fuel guage and confirmed that the plane did not have enough fuel, but by now everyone realized that Owens could not fly the plane.
    - Mike Z was appointed to turn the plane around and fly it back to Profitability Airport. He was chosen for the job because he had once ridden in first class on a plane like this and hadn't caused it to crash just be being there. The first thing he did was give parachutes to the remaining airline employees and throw them off the plane.
    - Hackney cut in front of a young woman in line for the bathroom. When she protested, he grabbed her face and said “I'll do as I please”. When Mike Z was told of this incident, he dismissed it with a “Whatever, Joel and I are too important to be bothered with trivial matters like assault” comment.
    - Mike Z and his cronies now had control of the cockpit and were randomly pushing buttons and turning switches trying to get the plane to turn without any luck. By now, one of the engines had run out of fuel and the plane had begun to descend.
    - The shareholders were in window seats and began to complain that the plane was descending and there was no turn happening to get them back to Profitability airport. Mike Z and his new flight crew had a strategy meeting and decided that the best option to address the shareholders concerns would be to throw them off the plane. It might lighten the load and make the fuel last longer.
    - The remaining passengers, the Nortel employees and the BoD members, were getting a little uneasy because another engine had run out of fuel. The BoD members in first class were complaining that since the two engines had stopped working, the cabin heater was not working anymore. They decided to tap into the remaining fuel to run the heaters so that the BoD members would be comfortable.
    - Still without a clue how to fly the plane and turn it around, Mike Z decides to take further action to buy them more time – “Joel, start throwing employees off the plane to lighten the load. Keep the remaining parachutes though, we might need them for ourselves!”

    To be continued.

    … and so the Nortel plane continues to fly off in the opposite direction from profitability.

  • Ibelieve

    Extract from Mike's Z Mail from 12/18/2008 remember all this while they where letting go employees he knew will not get paid. and the Media was talking about Chapter 11:

    ” also know, that as we work to reassure customers and regain ground, the speculation out there will continue. And, even potentially intensify. We are focused on our own coverage, but if you read the papers what you will see is speculation about multiple sectors and multiple companies. It is a sign of the times we are now living in. There is no easy way to put an end to the rumors. Frankly – only actions, not words will help Nortel.”

    Also:

    “In the coming weeks, around the world, I hope you will spend time with family and friends. Take time to look back on 2008 and be proud of your accomplishments. But also look forward. We know 2009 will not be any easier, and the media will not be any kinder. But, we also know that Nortel is filled with the most resilient, determined and talented employees in the industry. Let's start the New Year with a renewed passion for and focus on what lays ahead.”

  • OldBNR1

    Exactly!

    From Google translate:
    Ability to write in English first-class, all are bragging, passionate mouth shouted slogans, secretly do not know what do! !
    Grandfather did not accompany you to play, and Grandfather go NSN

  • bankrupt_bob

    This is kinda like when they siad, “We're not really going into bankruptcy protection, we're just exploring our options,” right?

  • angermanagement

    Brilliantly observed and reported!

  • protosphere

    “Typically, we do not comment on rumors in the media, and I will not do it here either.”
    So did he untraditionally comment when downplaying rumor last time too?

    He frantically migrates from “speculation” to “storys” to “commentary” to “rumor” in desperation yet he won't dismissing as false either

    So what's his point? He says he wants to “put it in perspective” ?

    Well, “developing a business plan to present to creditors and the courts that will determine our future.” …says says it all. However, the most important aspect is approval.

    He should have mentioned this forever eluding plan (with compound interest and costs mounting) is already stalled with the courts which doesn't humor these creditors. Let alone addressing the very employees that aren't humored with their severances

    What a futile exercise, the more they talk the more they put their foot in their mouth, like the “strong customer support” punchline as we witness their trend pre-bankrupt let alone today. Green Hackney in Enterprise down 30% as his veteran proven predessor works for Cisco. booming into bankruptcy post a $20 buying opportunity what foirecasts and downplayed this like bankruptcy or revisions when they also get bonuses on the business units they sell or financial innovation, nuff already Mikey, stick a sock in it. No one believes you anymore, the townspeople's sicke's aren't for the wolf anymore !

    I'd believe the journal before these guys or their forecasts any day, at least the journal has proven credibility

  • danman

    anyone else think the following…?

    1. Nortel will sell divisions and generate billions of $$
    2. The creditors will be paid off
    3. Nortel will emerge from bankruptcy and the stock price will rise.

  • protosphere

    http://www.reuters.com/article/marketsNews/idCA…

    Is looking to get a sense of what units are worth

    Nortel wants to present a “concrete” analysis of its assets to its creditors in April

    The source said on Thursday that in order to get a detailed picture of what the divisions may be worth, Nortel has reached out to potentially interested parties to gauge possible prices.

    The comments came amid media reports that Nortel could be broken up and sold, rather than have the company emerge from bankruptcy protection, as interested parties make offers for its core business lines.

    Nortel spokesman Mohammed Nakhooda declined comment.

    A second source also told Reuters on Thursday that Nortel has held talks with Nokia Siemens Networks regarding some businesses that Nortel plans to sell, but no decisions have been made on either side.

    Analysts had speculated the division, which includes Nortel's optical and carrier ethernet technology, could fetch as much as $1 billion.

    The business — which accounts for roughly 14 percent of Nortel's revenue — was put up for sale in September, but no bids materialized.

    ____________________________________________

    I think everything is hard to sell…. not good.

  • lardo

    If this rumour is confirmed on the following weeks, does it mean that people already laid off and future ones may expect to get some money for their severance package of if this is only a dream of?

  • protosphere

    absolutely, everyone !
    Now run out and buy as many shares as you possibly can

  • protosphere

    if it looks like a duck, walks like a duck, and quacks, what can it possibly be?

    secured creditors get paid first
    unsecured last /severances are unsecured

    creditors are big guys they need for approval to burn more monry and bonuses and such
    employees are little guys they tell to work hard as they cut these severances and gag like their shareholders/ analysts after telling them a reverse split would entice institutions in a 3 to 5 on track plan or $20 is a buy etc, as they promote pals and fraud trials loom etc…

    today they said they don't comment to downplay…

    got it yet? don't hold your breath. This is Nortel we're talkin here

  • danman

    no i don't “got it”. Your english is at the same level as tony montana off the boat.

    “secured creditors get paid first
    unsecured last /severances are unsecured”

    this is under the assumption they are going to file for bankruptcy, which they will not. Once they sell off even half the company's divisions the creditors will be paid off. so say by by to the creditors and say by by to bankruptcy.

  • Purpletip

    There is definitely a “deep throat” (circa Watergate) somewhere. He/she may not be identified until 2050 though.

  • slk

    Yep. And Z-man came out with a Z-mail right away and denied it, much like this time.

  • Anonymous

    He did not say the story was wrong, he just said “blah blah blah yadda yadda as always thank you for allowing me to continue to collect my big salary.” I am sure Deskjockey has his pick of Hitler movie scenes to portray this worthless Zmail.

  • stillatnortel

    Mike Z is the new Baghdad Bob

  • MyHeadHurts

    Considering he used the words “As you may have seen in The Wall Street Journal this morning”, the key being “THIS MORNING”, I'm going to go out on a limb and say the Nortel PR machine leaked the details of potential asset sales to the WSJ and others.

    This follows the idea that Nortel is checking to see what reaction this plan generates. If there is a hostile reaction to breakup, or particular asset sale they may change plans.

    Communications always vets the emails before they hit the employees. Legal must approve of the content before it can go out. So, unless MikeZ has the ability to override the legal team, I would say this was cooked up to go out. If the message was released a day or two later, then, my hypothesis would be wrong.

    This is what you learn in Business School 101 :)

  • horace_grimswold

    if NSN or Company X or Company Y pays more than the secured creditors are owed, they're fooling themselves.

    Picture a cigar-chomping smoke-filled backroom with executives from both Nortel and its suitor hammering out a deal. They're working hand-in-hand to come up with a plan and get this damn bankruptcy thing over with. They'll collude, then approach the bankruptcy judge saying “please approve — this is the best we can do” and the amount offered will magically equal the amount owed by secured creditors. Surprise, surprise!

    And you thought the acquiring company will be feeling altruistic to those unsecured creditors who threw their money at full risk towards Nortel? Fuhgettaboutit! And if the suitor does throw money around wildly and overpay, you have the next stock that you can short sell picked out for you.

  • horace_grimswold

    The 'Journal was the first media outlet to report that Nortel was exploring bankruptcy as an option back in December.

    Do the Nortel executives find out about what's happening at Nortel by reading the 'Journal? It's further ahead of the curve than most Z-mail updates are.

  • protosphere

    Seems like the Globe picked up on this too.

    http://www.theglobeandmail.com/servlet/story/LA…

    Nortel in talks to break up instead of trying to rebuild -March 12, 2009

    In a move that would end one of Canada's oldest and greatest business sagas, Nortel Networks Corp. is looking to break itself up by selling off major divisions rather than trying to rebuild itself under bankruptcy protection…

  • Another_Nortel_Watcher

    “Picture a cigar-chomping smoke-filled backroom with executives from both Nortel and its suitor hammering out a deal.”

    Thanks to DJ, I picture them in more of a bunker setting than a back room setting.

  • scalpcutter

    I think what he is saying is this.
    Yes once they sell off the company division the creditors will be paid off. But the big boys will be paid off first and they probably owe the big guys around 11 billion dollars. Therefore we know the big guys will get less than half of what they were owed, and even less than that after the lawyers. The poor schmuck rank and file employees are on top of the 11 billion. They are last in line and unfortunately they will get nothing. This is likely the sad reality of the situation. Sorry to Say.

  • WhySoSerious

    “There is no presence of Bankruptcy infidels in the city of Ottawa.”

  • WhySoSerious

    Here is Lisa, your friendly Chief Compliance Officer, rockin' her Tina Fey glasses : http://www.nortel.com/corporate/exec/gressel.html

    She can comply with me, anytime, if you know what I mean…

  • Moose_Chaser

    Another GEnius, I see…..Moose Chaser

  • NortelGal

    Hilarious, and absolutely dead on.

  • Moose_Chaser

    I am SOOOooo tired of this charade ! Words have become meaningless !

    They talk about INTEGRITY…I don't see any…

    The only reason any employees are still at Nortel is because no-one ELSE is
    hiring !

    Does anyone really believe what is being said anymore ? Moose Chaser

  • bankrupt_bob

    It just occurred to me how much Mike Z looks like the proverbial “used car salesman” in his photo. “Have I got a deal for you! It was only driven on Sunday to church by an eighty year old lady.” ;>)

  • chapt7

    Wireless to Nokia Siemens (Sue Spradley is former NT Pres and current NSN Pres) and Enterprise to Siemens and/or Avaya and employees to the unemployment line.

  • S_O_S_This_is_HMS_Nortel

    Why was he in a such haste to issue such an empty email either denying or confirming the news ?

    Plan to be available in late March ?….KEIP to be considered on March 20 …hmmm. Is there a need to approve KEIP if the LOBs are cut to pieces and sold off now ?

    Wait, Z is not in KEIP ..Is he ?…Pavi, CRO, CFO..bonus can be up to 184%…

    Hmm

  • Glad_I_GotOut

    Actually chapt7, if Siemens ended up with Enterprise, should not be too bad as they have very little sales footprint in N.A. May be bad for R&D in Canada, but Sales force, or what's left of it, could benefit from that. If it is Avaya, line em up!

    Interesting that IBM is not mentioned as a suitor because that is a rumor that is still running pretty hard inside Nortel.

  • Still_waiting

    Your commit about no one else is hiring is true at this time in my area. I had an interview slated for last week but I was given a courtesy call stating that the job I was interviewing for was frozen. I have an job offer but it is out of state and my wife would never move because of family and we have been preparing for life after Nortel since 1998. I know for a fact that the majority of my peers are looking and will take an substantial cut in pay to be free of the sword hangging over their heads each and every day. Enough is enough especially when the SLT will be eligible for KEIP/KERP after the March 20th decision. We, the engineers are running out of juice, time for a change of venue. Too many ,thank you for all you are doing for Nortel and our customers and too little conpensation for our effort.

  • Still_waiting

    Dude, at the risk of sounding callous and shallow, you need your glasses check.

  • S_O_S_This_is_HMS_Nortel

    So true, so true..nicely told sir !

    You forgot the part when the Admiral told Z “For you to take her down!”

  • Moose_Chaser

    With APOLOGIES to Desk Jockey….

    Here is the latest video, just in from the corporate Headquarters
    at West Mall :

    http://www.youtube.com/watch?v=I4khXkE5gEI

    Moose Chaser

  • upset_with_NT

    umm… I bet you work at QC for NT….

    you gotta be kidding…

  • Nortel watcher

    Still_waiting,

    I couldn't make sense of the following:

    “….the majority of my peers are looking and will take an substantial cut in pay ….”

    “….too little conpensation for our effort..”

    If you know you are overpaid when compared to the job market, then you can't say in the same breath that your NT paycheque is insufficient for your effort.

    Nonetheless, you guys are indeed what's kept and is keeping the company going. Good luck to you.

  • Nortel_Sucker

    Judas Z is the bottom feeder of the Corporate world. This guy is a weasel and scumbag. Voted worst CEO of 2008 for a reason. Will top the list in 2009 again.
    Bail out will you can still get vacation pay and part of your pension.
    Don't do it with dignity because scumbags like Judas don't deserve any respect.
    Rot in hell with all the other low lifes.

  • protosphere

    How intelligent. but I was responding to your other ID lardo

    what do you mean “say by by by?”
    did you mean buy or bye

    …and who is the heck is tony montana or is this another feeble at racial slur you displayed on Yahoo that got you banned and all your posts removed?

    Who else short of having incurable encephalitic syphilis would pump this corrupt corpse at this stage of the game

    I almost feel embarrassed to stoop to your level of pathological idiocy to even reply but in the rare event anyone remotely considers being scammed into buying a bankrupt stock , the TSX should allow to trade, I had to add my uncivil 2 cents to expose your integrity and brilliance

    bye bye

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