Nortel’s CALA Unit Files for Chapter 11

By Mark Evans | Published: July 15, 2009

Nortel Networks CALA Inc. in Sunrise, Fl. has voluntarily filed for Chapter 11 bankruptcy protection. Here’s an e-mail from CEO Mike Z.:

NNCI decided to seek Chapter 11 protection to preserve and administer its assets and business in a manner consistent with Nortel’s larger restructuring efforts.

First of all, I want to assure you that NNCI employees will continue to receive their paychecks and current health benefits. Additionally, I also want to emphasize that our day-to-day operations in Sunrise — and throughout the CALA region — are expected to continue without interruption. As always, we remain focused on our customers and committed to maintaining the high level of service our customers and partners are accustomed to.

I realize this is tough news to hear and I know you have a lot of questions. To help address some of the most common questions, please click here to access the Q&A on the Path Forward microsite. In the next few days, a GIS will be held on-site in Sunrise for NNCI employees.

We will continue to communicate all significant developments and answer questions on a timely basis. As always, thank you for your patience, understanding, hard work and dedication.


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  • nothappyanymore
    just heard that Roberto Ricossa is leaving Nortel?
    (given the company situation) there's nothing bad or strange at all.... but he introduced and participated on the GIS with Alvio just 2 days ago!.
    tougher days are in front of us--
    * chili, colombia and brasil entities are going to be closed
    * cash healthy locations will suffer.
    * and more than annoying the brainless mexico coe groups are the ones still alive.
  • Nortel watcher
    nothappy,

    as happens in most troubled organizations, the more talented and connected folks are able to find jobs and sometimes even at greater pay - perhaps RR was that lucky..and his job search likely began last year.

    are there any american expats in the Chile, Colombia and Brasil offices that Barrios will have to find them work to do in Sunrise?

    lastly, do you have an idea of how many people Nortel has in Sunrise?
  • felixmk
    I guess the severance, unqualified pension, and benefits of laid off CAL employees now goes poof.
  • FraudEqualsJAIL
    They can read this and weep :

    pay you, on or before the first pay period following the Employment Termination Date, SEVERANCE allowances consisting of two (2) years of annual base salary plus a special

    William A. Owens
    November 21, 2005
    Page 3
    award equivalent to two (2) years of annual bonus paid at target (" SEVERANCE Pay" ), in the total lump sum amount of Five Million Four Hundred Thousand Dollars ($5,400,000).

    William A. Owens
    November 21, 2005
    Page 4
    (Special Pension Arrangements) (d) pay you, as previously authorized by the Board of Directors and disclosed by the Corporation, a pension benefit over a guaranteed period of five (5) years commencing with a payment of Seven Hundred Three Thousand Nine Hundred Thirteen Dollars ($703,913.00) to be made in June, 2006 and equal monthly payments thereafter in the amount of Ninety Nine Thousand Seventy Three Dollars ($99,073.00) through and including November, 2010;


    http://www.techagreements.com
  • justproud
    "As always, we remain focused on our customers and committed to maintaining the high level of service our customers and partners are accustomed to"
    How can he write this to employees who perfectly know what is the meaning of this announcement and what will be their futur???
    This make me sick...
    Hung by testicles till their faces become blue: that's all MrZ and BoD deserve !
    in less than 10 years they have destroyed this 100 k employee company: what a success to mention in their resume
  • zeroman
    whats spanish for SOB. after the french, could be the mexican cartel of employees.
  • broadbandbill
    “to preserve and administer its assets and business in a manner consistent with Nortel’s larger restructuring efforts.”

    Mike, stop drinking that Macedonian boza - makes you sound really dumb. Enough dude; don’t you know when to stop? Pls don’t answer, we already know...--bb
  • netas
    Hi,

    does anyone know the shareholder structure of CALA?

    Thanks,
  • Theleftbehind
    100% owned by NNInc
  • Nortel watcher
    Too bad Barrios doesn't read this board. He could've answered this question as well as many others for us.
  • Theleftbehind
    This means that any employee that was getting the severance packages payments won't get them anymore and will become creditors. Same fir anyone fired from now on.
  • less
    The Path Forward

    The next great competitive advantage for any business is to become the Communications-Enabled Enterprise - where business processes are simplified, communications are unified, and enterprises perform with greater effectiveness. And no one is better positioned in the marketplace than Nortel to become the premier Communications Integrator.
  • NortelTragedy
    Mike Z needs to just go away. Maybe this is a good time for him and the Hackney's vacation in France!?!
  • broadbandbill
    Sacre blu! France would legalize Le Guillotine with them two. I suggest Darfur; 'lower cost geography' and all (with all due respect to the suffering Darfurians)…--bb
  • A_Peon
    yes send them over.
    there is a small airport just next to the campus where he can land his private jet.
    we have bbq ready for them.
  • McBeese
    "First of all, I want to assure you that..."

    Mike Z can no longer 'assure' anyone of anything. As soon as he uses that word, it almost guarantees that the opposite is going to happen. The guy doesn't have a shred of credibility left.
  • ydnicAtNt
    Standard Z swill. He forgot to add the part about how "I am convinced that by choosing this path at this time, we can put NNCI on sound financial footing once and for all".
  • Nortel watcher
    I recall a good number of the staff in Sunrise fall under North America and people had been let go without severance.
    Can anyone provide insight on ytd layoffs, how many employees are left today in Sunrise and if Barrios is still in charge? And what, if any, expats still remain in Latin America living high on the hog? There's got to be at least one in each of Brazil and Mexico.
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