Comments on: Why is EDC Involved in the Nokia-Siemens Deal?

By: whatnext4nt

whatnext4nt — Sun, 28 Jun 2009 22:37:21 +0000

In my opinion and the opinion of most others knowledgeable in the wireless industry, a wireless infrastructure going concern coming out of this situation with a future beyond a couple of years needs LTE to offset the gradual decline in CDMA sales. Of course, no major wireless operator would enter into a long term arrangement on LTE with a company in Ch 11. Therefore CDMA + LTE must be sold, and as a consequence the remaining wireless assets sold. Wireless operators, particularly tier 1 players, need to partner with strong and viable wireless network companies with global reach that are major players in the evolution of technology, standards, and the wireless ecosystem. This is not a game that any random collection of entrepreneurs and financiers can play in and win.

By: whatnext4nt

whatnext4nt — Sun, 28 Jun 2009 18:37:21 +0000

By: NTInfidel

NTInfidel — Sat, 27 Jun 2009 02:45:04 +0000

A massive fly in the ointment: The creditors are even more clueless than Nortel management. The idiots want to insist on attempting to revive Nortel that is teetering on the edge of implosion. The only reason I am hanging is in hopes of getting sold to real company. If they try to reorganize it will collapse. Nortel is damaged beyond repair. If this deal collapses, I will be looking for work full time.

http://www.reuters.com/article/bondsNews/idUSN2...
MatlinPatterson argues that the current bidding process fails to pay sufficient attention to the "going concern" option.

The firm said it has begun preliminary discussions with other creditors and is considering supporting a Chapter 11 reorganization plan in the United States, in lieu of the proposed sale.

By: freqmgr

freqmgr — Fri, 26 Jun 2009 05:38:55 +0000

From the beginning I felt that Plan A was liquidation and Plan B was to keep the doors open only if they have to….Mike Z has shown that indeed liquidation is Plan A.

By: zeroman

zeroman — Fri, 26 Jun 2009 04:29:23 +0000

these guys only take care of themselves. and they can look into the mirror everyday as if nothing happened.

By: PM_Guy

PM_Guy — Fri, 26 Jun 2009 03:13:25 +0000

This allows them to pay themselves big bonuses to dismantle the company instead of giving up control.and getting nothing. Ch 7 will be declared was all the assets have been sold off and bonuses paid out.

By: PM_Guy

PM_Guy — Fri, 26 Jun 2009 03:08:36 +0000

He had to find a new job as his days are number on the Nortel BOD. Hopefully he doesn't destroy this organization as he did with Nortel.

By: protosphere

protosphere — Thu, 25 Jun 2009 23:58:56 +0000

I don't mean to relay news that will make readers pass out but John Manley is to head Council of Chief Executives in Canada.

http://www.theglobeandmail.com/globe-investor/m...

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Why should EDC that paid Nortel to finance foreign orders and export jobs come of any greater surprise than an ex-PM testifying will bells on about cash payments to lobby sales for a foreign company, as Nortel CEO testifies day before torching the farm to a foreign company... is it because the vast majority of our industries are foreign owned anyways?

One might think we would govern our business affairs exponentially better to perhaps be a reflection than contradiction of our international philanthropic and humanitarian reputation. Maybe the U.S. with tough love gets it and we don't =)

By: NTblinker

NTblinker — Thu, 25 Jun 2009 23:37:09 +0000

So, why did Nortel file for CH11, instead CH7. All it's doing is CH7 related issues.

By: The psychiatrist

The psychiatrist — Thu, 25 Jun 2009 19:01:25 +0000

“Instead, the Federal Government and EDC have taken the next step of funding 46% of a foreign buyer’s purchase of Nortel’s crown jewels in the CDMA & LTE business. This funding support for the foreign purchase of Nortel’s crown jewels, is also a decision that supports Nortel’s announcement of a full liquidation, since it is likely impossible to have an ongoing concern without the company’s crown jewels being part of the ongoing concern. ”

The big question is why did the Canadian government and a Canadian Crown Corporation decline to save Nortel as we know it? Was it a lack of faith in senior management? The lack of a viable restructuring plan?"

Mark

you answered your own question-it's pretty obvious why the EDC was ready and willing to provide a $300 million credit facility to N/S in order to buy Nortel's CDMA wireless division as opposed to when they (EDC) were only willing to provide Nortel with a very modest $30 million credit facility during their supposed bankruptcy restructuring.

This tells me two things

1)EDC had very little confidence in Nortel's current management's ability to actually restructure a viable Nortel.

2)confirmation that the Canadian government was not going to bail Nortel out.

Thank goodness that at least the CDN government saw through the piss poor management that Nortel is infected with and saved tax payers potentially billions that would have been squandered as management would have continued to feed off of Nortel's dying carcass through a variety of shemes and self awarded bonuses.

Mike Zafirovski gave a pathetic display of pretending that as CEO of Nortel he cared for the many employees let go with no severance and pensions impacted for the many who have worked at Nortel long before he discovered Nortel's 100+ year history.

Someone should ask Mike if his kids educations were ultimately compromised when he stated that he invested his kids education money in Nortel stock!