Could a New Nortel Emerge?

By Mark Evans | Published: December 11, 2009

Just a crazy thought on a cold, winter afternoon but is there a chance that Nortel could emerge from bankruptcy protection rather than disappearing after selling all of its assets?

Let’s assume that LG acquires the stake in the Nortel-LG joint venture, and Nortel sells off some minor assets. That would leave it with the carrier/carrier VoIP business and some potentially lucrative patents, particularly the LG patents.

Nortel’s debt holders, who have seen the company sell about $2.6-billion in assets so far, would have a major stake in the new company, which would definitely be leaner, more focused and perhaps financially viable. And with a good senior management team, anything might be possible.

This scenario is probably a remote possibility but it’s good food for thought. What do you think?

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  • wasthere

    Yep ! Nortel is really well positioned for the future ;-)

  • 7dwarfs

    “And with a good senior management team, anything might be possible.”
    Aaah….if only all Xmas wishes came true, Mark!!!

  • free_agent

    The sad irony is that if Nortel had realized during the recent boom years that its current situation was unsustainable (since it was losing money in good times and had huge upcoming liabilities) and done a heavy restructuring (maybe in 2006), many, many people would be much better off. If the non-viable projects, products, and people were liquidated, Nortel might well have become profitable and lived to pay off the pension liabilities, etc. At least, more “value” would have remained (since several years of operational losses would have been avoided) and the pensioners/creditors would have gotten a higher percentage. And while it would have been painful to the many people laid off, they would have been job-hunting during good economic times, rather than the current nasty recession, and far fewer would suffer long-term unemployment. And getting this sort of thing right is what top management is paid to do…

  • zuperman

    i don't think sonus and genband can afford that although they can give the stalking horse offer. ericsson and nokia siemens are likely candidates and as nokia siemens losing two auctions, they will be hungry for cvas.

  • wasthere

    Yep ! Why not another cat fight between Ericsson & NSN.
    Creditors would love that ;-)

  • AnotherSlave

    I sure hope not. I couldn't deal with another bunch like this.

  • tiredofitall

    This is hilarous…is this a real post or did someone hack AAN? I think a Honeymoon Suite reunion tour is about as likely…and slightly more desirable.

  • stillatnortel

    It looks like Genband will be the stalking horse.

  • heavencanwait

    How do you know for sure and when?

  • stillatnortel

    I've heard from a few different people in the know. It was supposed to happen before Christmas, but now might not be until January.

  • heavencanwait

    There is still one week before Christmas. We never know

  • stillatnortel

    It looks like Genband will be the stalking horse.

  • heavencanwait

    How do you know for sure and when?

  • stillatnortel

    I've heard from a few different people in the know. It was supposed to happen before Christmas, but now might not be until January.

  • heavencanwait

    There is still one week before Christmas. We never know

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