Nortel files Chapter 11 in the US
Canadian telecommunications company Nortel announced today that it has filed for Chapter 11 bankruptcy protection in the US.
"These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be," said Nortel President and CEO Mike Zafirovski.
At the company's peak in 2000, it had 95,000 employees and stock valued at $1,231 per share. Today, the staff is around 26,000 and the stock trades at a meager 38.5 cents a share.
Nortel awaits a CCAA application hearing under the Ontario Superior court of Justice and will make subsequent announcements today about its European, Middle Eastern, and African subsidiaries.