Skip to search.

Nortel Files for Bankruptcy

Posted Jan 14, 2009 11:57am EST by Dan Frommer in Investing, Networking and Communication, Recession
Related: nt, ^ixic, msft

From Silicon Alley Insider, Jan. 14, 2009:

Telecom gear maker Nortel's (NT) downward spiral continues: The company filed for Chapter 11 bankruptcy protection in Delaware today. Nortel owes companies more than $3.8 billion, according to court filings, the WSJ notes.

What happened to Nortel? The company hired former Motorola exec Mike Zafirovski more than three years ago to turn things around after a huge accounting and management mess.

But since then, Nortel has fumbled, focusing at different times on wireless equipment, large-scale ethernet buildouts, office phones -- including a high profile partnership with Microsoft (MSFT) that seems to have led nowhere, etc.

More recently, Nortel's telecom carrier customers have cut spending as the economy has soured. And asset sales haven't worked out as planned.

Hat tip to RBC analyst Mark Sue, who predicted the bankruptcy back in November, cutting Nortel's price target to $0. That day, the market sent Nortel shares up 32% to $0.78. But today, investors are bailing on Nortel, sending shares down 77% to $0.07, an all-time low. (Nortel's split-adjusted share prices from 2000 -- more than $800 -- look even more out of place today.)

See Also from SAI:
Nortel To Zero?
Nortel's Turnaround Still Far From Finished

Go to Tech Ticker

There are no comments yet

Post a comment

Sign in to post a comment, or Sign up for a free account.
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.