Matlin Patterson Creates Advisory Board for Nortel Bid

Dion, Piasentin? Why not just invite back Dunn and Roth to join in on the fun?

The selection of Dion Joannou and other senior industry veterans as advisors is also designed to underscore MatlinPatterson’s longer term intentions for the Nortel business.

According to people close to the discussions, the team also includes Richard Burns, the former president of AT&T’s wireless network; Richard Piasentin, a former group vice president of sales for Nortel; Tony Pirih, former head of Nortel’s R&D operations, and Chris Smith, former executive vice president in charge of Alltel’s network operations.
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at that moment it looks like MP wants to have own team of managers for new Nortel.
and more of MP
In contrast, MatlinPatterson argues that a counter offer for the whole of the business, while not precluding divestitures “down the line,” could potentially save many more jobs than the estimated 3,100 that would be taken on by Nokia Siemens under its proposal.

What is this? It looks like Matlin Patterson is assembling a team with actual telecom experience? Gosh, what an AMAZING concept. Too bad mike zeroman didn't think of that.

Just in case anyone is wondering, here are the key dates for the stalking horse process to come to an end

http://www.crn.com/networking/218401355;jsessio…

July 21 Tuesday – deadline for bids to be submitted
July 24 Friday – bid opening/auction at Nortel's office in New York
July 28 Tuesday – court hearing to review the auction results

Can't.
Dunn is at John Manleys Cottage and Roth is doing a hermann munster remake movie.

Tony Pirih head of R&D?? Richard Piasentin group head of sales. I smell title inflation…

For the life of me I cannot remember what Tony Pirih did for Nortel in his 6-9 mo stint here. I remember Lowe introducing him, then this post. An exMoto guy…

Let me make some conclusions from all the discussions we had on this blog about Ch11, Mike Z and BoD.
I understand that Mike Z and BoD used Ch11 BK protection laws just to make restructuring Plan with the emerging from CH11 as an outcome.
Today is July 15, it’s been 7 months since Nortel announced Ch11
After the NSN bid of $650 mill Mike Z stated that he will sell all BU one by one, did he not? Nobody expects him to show restructuring Plan. Am I right?
And that is the point he should resign right away.
That unclear legal mambo jumbo causes senseless actions of the real owners of Nortel and that is creditors.
Let me show the main creditors right now.
$4.2 B debt plus $3 bill Pension Plan deficit…
Rebellion of Mike Z CEO and BoD against creditors is unprecedented and illegal imho.
Creditors said that selling Nortel in pieces is not the best option for them, did they not?
Ok, they will easily prove who the real owner is, Mike Z and BOD or them, with $7.2 bill if they agree to support MP.
Mike Z and BOD denied shareholders rights before and that’s why they did not have their say in all of that. too bad…
But now
The main creditors can bid as much as $7.2 bill to just prove they are the legal entity to decide about Nortel.
Even if some of you think it would require $7.2 bill in cash to put on the table /I don’t think it is necessary/
And here we are
If anyone wants to take over Nortel bid more than creditors or stay silent forever.

In other words, let creditors do what they think is right for Nortel.
As I know MP wants to restructure Nortel.
yes4aapl2007@yahoo.com

First it was to be a great company again, printed billions in paper and boasted 3 to 5 plan turnaround that led to downplayed insolvency after buying opportunities, etc…

Rather than emerge from bankruptcy more focused they sold the farm the day after the forced government inquisition into bonuses without severances

Today bagholders like EDC /Mat/Pat. try to bail sunken ship when everyone knows it won't float anymore. Why?

Too many insiders have their nose into the old cash cow now gone out to pasture thinking there is any value left, anything, the party was too great running the show to admit to any hangover… not realizing it is over with 400B in market cap gone, and the remaining units are fried, worth less by the day, they spent almost as much on PEC as they are selling the farm, and even that is declining.

No value but an overwhelming interest in maintaining value after burning so many. Investors, creditors, employees, taxpayer, markets, etc., all got burned… ad today who knows what goes on when a BOD member can defend Dunn and old insiders want to to a bid

Looking for any value where there is none. Management leached $400M to bring it to this state, I guess the lure of leaching more is overwhelming by too many.

Lets see if they can create yet another paper elephant for all the interest. In light of this, what don't we know, I don't trust any of it. Insiders, bagholders, anything associated with this contradicting money burner, as that is what it truly does best, burns money.

“potentially save many more jobs”

potentially is right but for how long at best, worse part is the motive, they are bagholders

No kidding. Richard P is an ops guy. Tony P is a Moto guy hired by Lowe who knows nothing about Nortel. It doesn't get any worse than that. This is what happens when viruses spread from one host to another.

So far, the terminal vacuum of vision and insight remains.

Proto
I say it's been criminal negligence at best what BoD and Mike has been doing.
They lost their mandate to lead Nortel the day they delisted NT stock.
They have always ignored shareholders, as long as I remember.
Who they represent now?
The next in line to be legal entity deciding Nortel's future are creditors.
The day BoD and Mike admitted failure in presenting restructuring Plan was the day for them to resign and let creditors do their job_Plans.
They lied to Judge who decided that creditors have to bid for what's legally theirs. NSN deal smells from the distance.
$650 mill would be nice before BK, it means included the debt and liabilities related to that unit, means some money for shareholders as well.
No wander creditors are pissed off for such crooked game Mike Z and BoD plays with them.
I would expect new charges against BoD and Nortel's managers for not doing their fiduciary duties to represent the best interest of the stakeholders.
What about OttawaCitizen
By Bert Hill, The Ottawa CitizenJune 24, 2009

With the move to sell off all its operating divisions, Nortel Networks faces a tough decision.
If, as now appears highly likely, Nortel fails to emerge from bankruptcy protection, can it still pay full retention and incentive bonuses to 972 key executives and product development and sales staff?
….
Question: “Is Nortel emerging from bankruptcy?
Answer: “Nortel is focused on finding the right buyers for its businesses. If we are successful in selling our businesses Nortel will not continue as a going concern and will not emerge.”
http://www.ottawacitizen.com/Business/Critics+q…

>Rebellion of Mike Z CEO and BoD against creditors is unprecedented and illegal imho
Dont agree with you on the illegal part. The rationale being that it was the Delaware court which heard both sides of the argument and then made the decision to allow selling off the parts.

>can it still pay full retention and incentive bonuses to 972 key executives and product development and sales staff
I suspect 'Yes' since it was a separate pot approved explicitely by the bankruptcy court.

Another example of milking the system: the CDMA VP Noy Kucuk has been living as an expat in France for quiet a while (significantly more remuneration as an expat), even though he does not have one frigging CDMA team member or customer in France!!!! Now that he is forced to move back from France, he is going to Calgary, instead of Ottawa or Richardson where the CDMA teams exist!!!

All this while the peons are told to cut costs, garbage is being collected only once a week in Ottawa, coffee stations are closed, cafeterias are being closed!!!!

“NSN deal smells from the distance.”

sure,
ex-Nortel people /insiders
bagholder support (EDC in this case. even large creditor Mat-Pat wants more to raise bid, ex managers want more for pensions, everyone wants more when well runs dry to maintain white elephant)

seems they still have an extended family of those they hold close relationships in high places / finance, government, legal circles, as BOD member's law firm defends Dunn

they scrap restructuring to sell the farm immediately after government inquiry they were forced to attend by subpoena to answer why they pay millions in bonuses while cutting severances

hot seat smirks focused on maintaining value… after 3 to 5 years from great to bust, buying opportunity hiding behind kids investment with bells on for sympathy,

if listing tax credits as largest asset is only tangible grounds for lawsuit, our laws need attention

NSN deal stinks. Mat-Pat potential bid stinks, anything Nortel does stinks. I agree.

Piasentin did wireless sales in EMEA for a long time.

It looks like MP is trying to recruit clowns for the Cirque du Soleil. Joannou, Piasentin, and Pirih's only skills were (1) their ability to collect pay checks; and (2) their ability to become invisible and avoid productivity. If these clowns were ever allowed to run a company, their incompetence would rival MIke Z's team of GEniuses.

It is obvious that MP is looking to force Nokia to pay more for the CDMA / LTE assets and get a better pay back for their bond holdings. None of this pay out will filter down to ex-employees owed severance or pensioners.

The bottomline is that MP does not have the capital to make a serious bid for Nortel's assets and no private equity firm or bank is willing to lend them a single Looney. Hence, MP's statement that they are willing to partner.

MP wont be able to pull this off. It can buy out nortel and break it up in pieces making millions. it will not be in the business of turning the company around. more uncertainity, more erosion of customers. more dwindling of revenues.

eve nif MP raises the bid, NSN has already said it will raise its bid. dont see MP winning this.

Do you work for MP? Because you seem to do nothing but support MP and as far as I can tell you are the only one.

No one can hold Nortel together. Nortel is done. Selling the assets to actual telecom companies is absolutely the best thing can happen for employees.

The first such potential sale is with NSN and this will be a big win for those employees, they will get offer letters and be full employees again, out from under bankruptcy and with the full rights of employee again.

If MP wins, the dark clouds continue.

agree.

No one can hold Nortel together. Nortel is done. Selling the assets to actual telecom companies is absolutely the best thing that can happen for employees.

T

The thing is yes4apples, paints it like MP would be good for employees. That clearly makes no sense. I also responded to zeroman why I believe they would also fail at extracting more value by purchasing everything. Something which I think they will eventually realize and back down from.

As far as creditors go(other than MP), it doesn't matter who buys what pieces or what they do with them after, they get their money and it is over, so for a creditor this discussion is largely moot. Auction, highest bidder, done. Not much to argue there.

So a more important discussion is what these buyers mean for the employees(presumable more employees here than creditors) that have born the brunt of punishment through all of this.

Without a doubt being sold to a working Telecom, becoming real employees with rights again, and having stability, is better than a vulture like MP acquiring all or the part of Nortel you work for and continuing the uncertainty, decline.

maybe this will scare off others. I think it will have that effect. nobody wants to get in a bidding war. but if it just wants to increase price, all it has to do is offer $750M for CDMA/LTE and watch Nokia's move.

Nokia would then beat it right. Wrong! I agree they will just let MP take the business and kill it buying it for half that 6 months down the road.

I would think everyone is waiting for Q2 results and they are going to be a bombshell. meaning more uncertainity + lower bids.

MP has no understanding of the Nortel business. The group of people they got to consult are not even qualified let alone know what is going on at Nortel internally.

So maybe good for Nortel and MP but bad for creditors.

What the hell does Nortel want. Its been 6 months for all units on the chopping block. Only one public bid so far. Its losing value with every passing day.

Wapuka1
Creditors are a bit surprised by Mike Z and BoD 's move=rebellion.
They supposed to work in the best interest of creditors, make restructuring Plan, get creditors' acceptance and do the restructuring under Ch11. That's what it all was about, wasn't it?
That's why courts gave Nortel more time to draw the Plan.
and June 19 statement that Nortel entered into agreement with NSN and will sell all units one by one without Plan and without emerging from BK. That was surprise to all and stupid act in face of potential customers and other stakeholders.
There was not much time left for MatPat but look, they've got many ex managers_insiders and are serious in their fight to squeeze much more than Mike Z would do by fireselling.
Getting hot!
btw
NSN, Sue contradicted herself few times already. Who would believe NSN anyway?
Oh, they have support of that guy, NTinfidel. He was ready to disclose important info for the bidding process. example who was on the campus, how the DD was done… and more.
Who knows how much he knows, but it's not the reason to share such info publicly. I would suspect that he can be the one who signed his name too on that initial NSN deal at funny price…otherwise why would he deny freemarket open_fair bidding process?