Nortel files for bankruptcy

Nortel Networks said Wednesday it filed for bankruptcy protection in the US and Canada in an effort by the once high-flying telecom giant to weather the financial crisis.Once Canada’s largest company, Nortel has been struggling since the dot-com collapse and a shifting of the telecommunications landscape. It was facing a repayment of some $107 million in debts.

The company said in a statement it would seek creditor protection under the Companies’ Creditors Arrangement Act in Canada and the US bankruptcy code’s Chapter 11.

“The company’s normal day-to-day operations are expected to continue without interruption,” Nortel said.

“Nortel remains 100 percent focused on serving customers worldwide through continued R&D (research and development) investments and support of its product portfolio to fulfill customer needs.”

“Nortel must be put on a sound financial footing once and for all,” said Nortel president and chief executive Mike Zafirovski in a statement. Read full story