Nortel Obtains Canadian and U.S. Court Approvals for Sale Agreement
With Ericsson for CDMA Business
(Thomson Reuters ONE) - TORONTO--(Marketwire - July 28, 2009) - Nortel(1) NetworksCorporation (OTCBB: NRTLQ) announced that at a joint hearing today,it, its principal operating subsidiary Nortel Networks Limited, andcertain of its other subsidiaries including Nortel Networks Inc.,obtained orders from the Ontario Superior Court of Justice and theUnited States Bankruptcy Court for the District of Delaware approvingthe sale agreement with Telefonaktiebolaget LM Ericsson ("Ericsson")for substantially all of Nortel's CDMA business and LTE Access assetsfor a purchase price of US$1.13 billion.As announced on July 25, 2009, under the asset sale agreement,Ericsson will purchase substantially all of Nortel's CDMA businesswhich is the second largest supplier of CDMA infrastructure in theworld, and substantially all of Nortel's LTE Access assets giving ita strong technology position in next generation wireless networks.Also as part of this agreement, a minimum of 2,500 Nortel employeessupporting the CDMA and LTE Access business will receive offers ofemployment from Ericsson. Completion of the sale is subject toregulatory and other customary closing conditions, and the purchaseprice is subject to certain post-closing adjustments. Nortel willwork diligently with Ericsson to close the sale later this year.About NortelNortel delivers communications capabilities that make the promise ofBusiness Made Simple a reality for our customers. Our next-generationtechnologies, for both service provider and enterprise networks,support multimedia and business-critical applications. Nortel'stechnologies are designed to help eliminate today's barriers toefficiency, speed and performance by simplifying networks andconnecting people to the information they need, when they need it.For more information, visit Nortel on the Web at www.nortel.com. Forthe latest Nortel news, visit www.nortel.com/news.Certain statements in this press release may contain words such as"could", "expects", "may", "should", "will", "anticipates","believes", "intends", "estimates", "targets", "envisions", "seeks"and other similar language and are considered forward-lookingstatements or information under applicable securities laws. Thesestatements are based on Nortel's current expectations, estimates,forecasts and projections about the operating environment, economiesand markets in which Nortel operates. These statements are subject toimportant assumptions, risks and uncertainties that are difficult topredict, and the actual outcome may be materially different. Further,actual results or events could differ materially from thosecontemplated in forward-looking statements as a result of thefollowing (i) risks and uncertainties relating to Nortel's CreditorProtection Proceedings including: (a) risks associated with Nortel'sability to:stabilize the business and maximize the value of its businesses;obtain required approvals and successfully consummate pending andfuture divestitures; successfully conclude ongoing discussions forthe sale of Nortel's other assets or businesses; develop, obtainrequired approvals for, and implement a court approved plan; resolveongoing issues with creditors and other third parties whose interestsmay differ from Nortel's; generate cash from operations and maintainadequate cash on hand in each of its jurisdictions to fund operationswithin the jurisdiction during the Creditor Protection Proceedings;access the EDC Facility given the current discretionary nature of thefacility, or arrange for alternative funding; if necessary, arrangefor sufficient debtor-in-possession or other financing; continue tohave cash management arrangements and obtain any further requiredapprovals from the Canadian Monitor, the U.K. Joint Administrators,the French Administrator, the Israeli Joint Administrators, the U.S.Creditors' Committee, or other third parties; raise capital tosatisfy claims, including Nortel's ability to sell assets to satisfyclaims against us; maintain R&D investments; realize full or fairvalue for any assets or business that are divested; utilize netoperating loss carryforwards and certain other tax attributes in thefuture; avoid the substantive consolidation of NNI's assets andliabilities with those of one or more other U.S. Debtors; attract andretain customers or avoid reduction in, or delay or suspension of,customer orders as a result of the uncertainty caused by the CreditorProtection Proceedings; maintain market share, as competitors move tocapitalize on customer concerns; operate Nortel's businesseffectively in consultation with the Canadian Monitor, and workeffectively with the U.K. Joint Administrators, French Administratorand Israeli Joint Administrators in their respective Administrationof the EMEA businesses subject to the Creditor ProtectionProceedings; actively and adequately communicate on and respond toevents, media and rumors associated with the Creditor ProtectionProceedings that could adversely affect Nortel's relationships withcustomers, suppliers, partners and employees; retain and incentivizekey employees and attract new employees, as may be needed; retain, orif necessary, replace major suppliers on acceptable terms and avoiddisruptions in Nortel's supply chain; maintain current relationshipswith reseller partners, joint venture partners and strategic alliancepartners; obtain court orders or approvals with respect to motionsfiled from time to time; resolve claims made against Nortel inconnection with the Creditor Protection Proceedings for amounts notexceeding Nortel's recorded liabilities subject to compromise;prevent third parties from obtaining court orders or approvals thatare contrary to Nortel's interests; reject, repudiate or terminatecontracts;and (b) risks and uncertainties associated with: limitations onactions against any Debtor during the Creditor ProtectionProceedings; the values, if any, that will be prescribed pursuant toany restructuring plan to outstanding Nortel securities and, inparticular, that Nortel does not expect that any value will beprescribed to the NNC common shares or the NNL preferred shares inany such plan; the delisting of NNC common shares from the NYSE; andthe delisting of NNC common shares and NNL preferred shares from theTSX; and (ii) risks and uncertainties relating to Nortel's businessincluding: the sustained economic downturn and volatile marketconditions and resulting negative impact on Nortel's business,results of operations and financial position and its ability toaccurately forecast its results and cash position; cautious capitalspending by customers as a result of factors including currenteconomic uncertainties; fluctuations in foreign currency exchangerates; any requirement to make larger contributions to definedbenefit plans in the future; a high level of debt, arduous orrestrictive terms and conditions related to accessing certain sourcesof funding; the sufficiency of workforce and cost reductioninitiatives; any negative developments associated with Nortel'ssuppliers and contract manufacturers including Nortel's reliance oncertain suppliers for key optical networking solutions components andon one supplier for most of its manufacturing and design functions;potential penalties, damages or cancelled customer contracts fromfailure to meet contractual obligations including delivery andinstallation deadlines and any defects or errors in Nortel's currentor planned products; significant competition, competitive pricingpractices, industry consolidation, rapidly changing technologies,evolving industry standards, frequent new product introductions andshort product life cycles, and other trends and industrycharacteristics affecting the telecommunications industry; anymaterial, adverse affects on Nortel's performance if its expectationsregarding market demand for particular products prove to be wrong;potential higher operational and financial risks associated withNortel's international operations; a failure to protect Nortel'sintellectual property rights; any adverse legal judgments, fines,penalties or settlements related to any significant pending or futurelitigation actions; failure to maintain integrity of Nortel'sinformation systems; changes in regulation of the Internet or otherregulatory changes; and Nortel's potential inability to maintain aneffective risk management strategy.For additional information with respect to certain of these and otherfactors, see Nortel's Quarterly Report on Form 10-Q for the quarterended March 31, 2009 and Annual Report on Form 10-K for the yearended December 31, 2008 and other securities filings with the UnitedStates Securities and Exchange Commission. Unless otherwise requiredby applicable securities laws, Nortel disclaims any intention orobligation to update or revise any forward-looking statements,whether as a result of new information, future events or otherwise.(1)Nortel, the Nortel logo and the Globemark are trademarks of NortelNetworks.Contacts:NortelKaren Monaghan613-763-1133kmonagha(at)nortel.comNortelJay Barta972-685-2381jbarta(at)nortel.comwww.nortel.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 28.07.2009 - 23:39 Uhr
Sprache: Deutsch
News-ID 4056
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 476 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Nortel Obtains Canadian and U.S. Court Approvals for Sale Agreement
With Ericsson for CDMA Business "
steht unter der journalistisch-redaktionellen Verantwortung von
Nortel (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
