Ad
Ad
Ad
Electronics Production | March 05, 2009

Nortel develops restructuring plan

Nortel Networks has appointed CFO Pavi Binning to develop a restructuring plan that is to help the company in its recovery after the insolvency filing. The company is particularly trying not to be broken up, but has to pay suppliers while restructuring.
This comes after a reported $2.14 billion loss in its 4Q fiscal report. "Work is taking place across Nortel to develop a comprehensive plan to restructure Nortel into a more focused, leaner, and more competitive company," the Nortel president and CEO Mike Zafirovski is cited in a informationweek article.

Nortel has scheduled a restructuring plan for its creditors by April. First measure is the preciously announced layoff of around 3,200 jobs from its workforce. However, the company will beforced to pay some creditors (e.g. Flextronics) immediately, while the company in turn has to wait for end-user customers to pay.

The company also announced the layoff of 45 employees from its Israeli operations. This measure is due to the chapter 11 filing of the company and a decline in demand for its products.

Comments

Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
Further details can be found here.
Load more news
August 22 2017 10:36 AM V8.6.0-2