Report: Nortel may sell off two key businesses
Talks on letting go of two units raises the question of whether the telecommunications equipment maker will emerge from bankruptcy protection, according to The Wall Street Journal.
Telecommunications equipment maker Nortel Networks is reportedly in discussions to sell two key business units, a move that may affect its ability to re-emerge from its Chapter 11 bankruptcy status, The Wall Street Journal reported.
Nortel, which filed for Chapter 11 bankruptcy protection in January, has received interest from competitors in its wireless equipment operation, as well as its unit that creates corporate communications networks, according to the Journal.
In September, the struggling telecommunications equipment maker raised the issue of finding a buyer for some of its assets, after it warned Wall Street its financial situation had worsened.
Avaya and Siemens Enterprise Communications are both reportedly interested in Nortel's enterprise networks business, while Nokia Siemens Networks may be interested in snapping up its wireless equipment unit, the Journal reported.
Although Nortel may ultimately sell those two business units, the Journal notes that a source informed the publication that it would be "very premature" to assume such a move would trigger the company's liquidation.
Previously, the company's chief executive had indicated the company would share its reorganization plan with investors in April or May.