Masthead graphic based on a painting by Gudrun Thriemer.

Wednesday, January 14, 2009

Andrew Willis, Jacquie McNish, and Matthew Hartley, "NORTEL files for bankruptcy protection," Globe & Mail, January 14, 2009.

Former technology titan Nortel Networks Corp. filed for bankruptcy protection Wednesday, a move that will likely see what was once Canada's great corporate success story broken up and sold to foreign rivals.

  ...the deepening global credit crunch had raised concerns that a troubled company such as Nortel would not be able to raise enough money to finance its operations during bankruptcy proceedings.

Nortel's board of directors was meeting last night to deal with a financial crisis, as the economic downturn translates into a sharp drop in orders from phone company clients. The telecom-hardware manufacturer failed to find buyers for a number of divisions that were put up for sale in September, and faces the prospect of paying $107-million (U.S.) of interest on its debts tomorrow.

  At its peak, this one company accounted for nearly one-third of the total value of the TSX; the company was worth more than all six big banks combined.

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