Could a New Nortel Emerge?

It looks like Genband will be the stalking horse.

How do you know for sure and when?

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.

There is still one week before Christmas. We never know

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.

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

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...

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

LG isn't capable of running the joint venture by itself. Nortel was the technology driver in that venture and LG will need a strong partner to take its place. I think LG should stick to making TVs and refrigerators and sell off its stake as well.

CVAS is likely to be sold, even though it is the best unit Nortel has. There will be plenty of interest and it should sell for close to a billion.

http://money.cnn.com/news/newsfeeds/articles/ma...

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

It's like the curse on the Hope Diamond:

"Standard & Poor’s lowered its credit ratings on Ciena in November from “B+” to “B” following its winning $769 million bid for bankrupt Nortel Networks’ Metro Ethernet Networks business."

http://washington.bizjournals.com/washington/st...

Nortel unveils first commercially 100g optical platform. Isn't that ironic !

http://money.cnn.com/news/newsfeeds/articles/ma...

"Nortel - "Chapter 11, page 1, in the Book of 100G"
"Nortel - Chapter 11 at 100Gs"

I dunno, something like that.

I am off to Ericsson, but I care. I like to see Nortel survives in some way.

I am off to Avaya, so I could care less.

MC

I'm glad that someone could care less. I couldn't.

I am surprised after all the destruction and misery Mr Z has caused that a disgruntled shareholder or employee has not "whacked" him yet.

We sure are a passive bunch. Myself included.

Mark, I think you are on crack, and short of news.

Mickey Mouse could run the company better than the lot that ran it into the ground. (With apologies to Walt Disney!)

Then there's alway Goofy ...even Pluto ;>)

DMS made Nortehrn Telecom into a major company. It sustained Nortel whil billions were wated on wonky business plans. And now it is the only thing left.

The story of Nortel is the story of DMS. It lasted for over 30 years but is now gone.

Yes, but who to run this theoretical Nortel emerging from the grave? I say bring back one of the four horsemen of the apocalypse - let Frank Dunn run it. If he makes it profitable, then he avoids all current legal action against him...

Just after the Nokia bid for CDMA, Samih Elhage declared :

"We will be selling all remaining businesses," Samih Elhage, president of Nortel Networks Corp.'s carrier VoIP and application solutions division. "There is a process … in place to allow us to achieve this objective as soon as possible''

CBC news June 22 2009.

6 months have past Samy boy !!!

Now that Mike Z has left, Samih is back to being what he always was - a good analyst type who is full of commentary, advice and alternatives. Great internal consultant (worked well with McKinsey) He made his break as Mike's bagman. Not close to be the type of leader required to execute and deliver. Wouldnt bank on his ability to predict or direct since his godfather left.

There is a way the Carling Campus could survive and Thrive in Ottawa.
Transfer total Nortel Headquarters to Ottawa.
Turn the Carling Towers into a huge mosque.
Implement a new law requiring any employees be fully bilingual in French and English.
Watch the fed, provincial and municipal monies pour in.

BIGOTS, have no place, no where. Merry X-mas

I volunteer to demo, pack and send all hardware and sundry materials to reclamation because they take up space.

If them reclaimers offer $50 per skid, I say we counter most aggressively with a $20 offer.

Nortel has legally stolen my Retirement Allowance!

Christmas is bleak and don't know what to give my kids for Christmas gifts?

Oh yah THANK GOD FOR THE DOLLAR DOLLAR STORES!

Maybe I'll check what's good deals at the local GOODWILL STORES
or SALVATION ARMY OUTLETS!!!!!!!!

NORTEL! You big "god damned" SCROOGE!

I am not sure about the patents and the LG portion, but let's talk about CVAS.

In fact, CVAS has been slowly becoming a Ottawa based company, using Turkey as its development/support based. With this transition, technically, they can emerge from ch11 and rebrand themselves as the original Nortel that invented DMS and other great products.

However, the senior management will be the same group of people that made numerous wrong decisions, that laid off good employees to earn their bonus. For around 2,000 employees, there are still as many layers as with 90,000 employees. That tells how many unnecessary mid/high level management still keeping their job here. Also, lots of good engineers have jumped ship or being laid off. All that's left are support contracts, legacy products, and a failed brand.

What's the point of emerging from ch11 if it will file ch11 again soon ?

Mark, you are too funny!!

You're a funny guy Mark.

If Nortel had "a good senior management team" we would all wake up tomorrow and realize that the events of the past year were nothing more than a bad dream.

The 28 billion was 3x over stated , the real number is 11-12B
I get a charge out of people that think ONLY Nortel was losing money, EVERYONE is losing money in this economy, Look at ie:Lucent. Its across the board and its ruffly the same % for everyone . Nortel could have offered a DEBT for EQUITY swap if they really wanted to survive, they had 2.4B in the bank when they filed for Ch11 This is a heist and is designed to clean out the Employee's and SHARE HOLDERS. $380,000,000,000 was Nortels Market Cap at the height of the tech bubble .. that stock was sold to SOMEONE (though not the smartest investors) Now its all reduced to ZERO , and now those middle class people can lick there wounds and go BACK TO WORK ... its by design , don't kid yourself.

Cisco is making money
Rim is making money
Avaya is making money

Losts of companies are making money.

Nortel's problems are of Nortel's creation and not the fault of the economy
Alcatel bought Lucent and with it bought the Lucent/Bell System attitude that they are the fount of all of telecom technology. This is the attitidue that made DMS possible sinve AT&T thought that they made the decisions on what the network would be like.

Nortel is in general meltdown and liquidating now, especially after bankruptcy. This would defy thankfully gone. =)

A few billion from fire-sold assets won't buy new shoes relative to what they owe and bear in mind their cash is finally being hit even while stalling creditors.

Carrier VoIP reported 14% increased revenues but the rise in VoIP revenue was due to closing up various projects it was already working on.

LG revenues were down 51 percent year-on-year to $103 million in the third quarter.

Can't see creditors holding for a decline that always did lose money.

I also can not see how they can at least remain as a shell company licensing out its intellectual property given they just about sold it to RIM before folding ...for all that is dear to them...so what prevents them from selling it now...

I'd also think not, being so liability laden. I believe they want to sweep everything under the rug to pay off their big business creditors ASAP and while they can the way new creditors like the tax man pops up out of no where. Don't forget that fraud trials loom on both sides of the border too.

They are in too deep to ever rise from the ashes is my take. endless reasons they can't emerge...even ch 11 was a ploy /loophole so they could sell assets before the courts did defending they could get more for their big business creditors while cutting severances to ensure they get more, and with bonuses needless to say. They already tried to survive, others wanted to take them over... but its over.

I think their stakeholders would have rocks for brains to allow any greater liberties as an ongoing entity but maybe they do having already supported them so heavily to begin with, neglecting the largest pension shortfall in Canada. What did they expect? Over 10% returns and payments on debt to be maintained? =)

Hey anything is possible I guess technically but this one seems highly unlikely. They MUST sell it off to appease the courts/big business creditors and I can not see creditors accepting holding a single thing any longer, they are antsy enough. Even if they could... what do they owe? 24 billion?

NO , Not a chance , the Canadian Government is hell bent on removing wealth In Canada , they will not let this servive. Look at the TRUST companies in Canada , doing very well for investors and then Squashed by the Federal Government. $300,000,000 From the Fed's to help break up Nortel ? Orginized Crime ?

If they were so determined to remove wealth, they would have bailed Nortel.

The government are the good guys, the law, Nortel are crooks cutting severances who posted false profits for bonuses they still kept.

The government want to enact employees getting paid first and to hell with big business creditors and all their pals and contacts in high places including government. Harper is the new sheriff in town and he distances himself from frauds =)

Don't see this happening. Management keeps indicating that the stalking horse for CVAS is getting very close. I don't think there is any intention by the higher-ups that remain or the courts to create a "new Nortel". This rumor keeps coming up, but I think the chances are very slim.

Very close ???? Well, it was very close 4 months ago !

http://www.allaboutnortel.com/2009/08/14/sonus-...

Will be announced before year-end

Do you have an idea who wants to put it under his Christmas tree ?

Rumour is still Genband and Sonus for the Stalking Horse

I'll go with a long shot : NSN picks it up for 450 millions.

Very possible. NSN and Ericsson are on the list of candidates as well.

If they all go for it like hungry wolves, may be it could reach half a billion ;-))))

that will get at least a billion US dollars both for CVAS and Netas. Since Netas means lots to CVAS they will be sold in together in a package.

Zuperman, do you know who are the likely candidates to pay that?

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.

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

Interesting, but as Yogi said:

In theory there is no difference between theory and practice. In practice there is.

Like, where do I get in line to buy stock, dude... pass the reefer...

Cobblers... they might have some sort of dodgy company that holds onto a few patents. Some of Mike Z's friends will run it, he will come back as an advisor and the Strangler will continue to polish Z's towbar after he gets booted from Avaya.

The brand is too damaged, so I think this unlikely.

MC

which movie is this? :)

Apocalpyse Now

WHo would lead this "new" Nortel? Certainly not the current leadership and their minions. I have said previously that any "new" Nortel would require a rebranding/new name and total replacement of the current "leaders". The latter is a serious enough empediment to prevent the current bonus babies from allowing a "new" Nortel to be formed. Unless, of course, the management of the "new" Nortel would be paying them substantial severance and other packages.

As long as I get my severance package back they could do what ever they want :emerge, rise from the dead, walk like zombies,submerge again, evaporate ......

"And with a good senior management team, anything might be possible."

Ay, there's the rub...

"...good senior management team" and "Nortel"? Har. Har.

Nortel management, an oxymoron if there ever was one.

Get out of the cold - you're suffering from brain freeze!!

Don't give lawyers and execs and ideas ... they've had this plan in the works for more than one year and it's execution is nearly complete, the death of and final rites for Nortel.

It's a win-win for bondholders b/c they get some cash now from the sale of assets and the rest gets converted to equity in the new Nortel with the hope that CVAS continues to be the rising star that it is resulting in an equally rising share price over time. The tradeoff is would their equity investment yield more in another company of their choice be it or not high-tech?

Of course, those who have been getting bonuses under Ch 11 of the old Nortel may hope for a 2nd bankruptcy with an accompanying triple round of bonuses.