Nortel Obtains Further Extension of Stay Period Under CCAA
(Thomson Reuters ONE) - TORONTO, ONTARIO--(Marketwire - July 30, 2009) - Nortel(1) NetworksCorporation (OTCBB: NRTLQ) announced today that it, Nortel NetworksLimited ("NNL") and the other Canadian subsidiaries that filed forcreditor protection under the Companies' Creditors Arrangement Act("CCAA") have obtained an order from the Ontario Superior Court ofJustice ("Canadian Court") further extending, to October 30, 2009,the stay of proceedings that was previously granted by the CanadianCourt. The purpose of the stay of proceedings is to allow the Nortelcompanies to continue to advance in discussions with interestedparties for the sale of its businesses, continue to assess otherrestructuring alternatives if it is unable to maximize value throughsales and file a plan of arrangement.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 itsbusinesses; obtain required approvals and successfully consummatepending and future divestitures; successfully conclude ongoingdiscussions for the sale of Nortel's other assets or businesses;develop, obtain required approvals for, and implement a courtapproved plan; resolve ongoing issues with creditors and other thirdparties whose interests may differ from Nortel's; generate cash fromoperations and maintain adequate cash on hand in each of itsjurisdictions to fund operations within the jurisdiction during theCreditor Protection Proceedings; access the EDC Facility given thecurrent discretionary nature of the facility, or arrange foralternative funding; if necessary, arrange for sufficient debtor-in-possession or other financing; continue to have cash managementarrangements and obtain any further required approvals from theCanadian Monitor, the U.K. Joint Administrators, the FrenchAdministrator, the Israeli Joint Administrators, the U.S. Creditors'Committee, or other third parties; raise capital to satisfy claims,including Nortel's ability to sell assets to satisfy claims againstus; maintain R&D investments; realize full or fair value for anyassets or business that are divested; utilize net operating losscarryforwards and certain other tax attributes in the future; avoidthe substantive consolidation of NNI's assets and liabilities withthose of one or more other U.S. Debtors; attract and retain customersor avoid reduction in, or delay or suspension of, customer orders asa result of the uncertainty caused by the Creditor ProtectionProceedings; maintain market share, as competitors move to capitalizeon customer concerns; operate Nortel's business effectively inconsultation with the Canadian Monitor, and work effectively with theU.K. Joint Administrators, French Administrator and Israeli JointAdministrators in their respective Administration of the EMEAbusinesses subject to the Creditor Protection Proceedings; activelyand adequately communicate on and respond to events, media and rumorsassociated with the Creditor Protection Proceedings that couldadversely affect Nortel's relationships with customers, suppliers,partners and employees; retain and incentivize key employees andattract new employees, as may be needed; retain, or if necessary,replace major suppliers on acceptable terms and avoid disruptions inNortel's supply chain; maintain current relationships with resellerpartners, joint venture partners and strategic alliance partners;obtain court orders or approvals with respect to motions filed fromtime to time; resolve claims made against Nortel in connection withthe Creditor Protection Proceedings for amounts not exceedingNortel's recorded liabilities subject to compromise; prevent thirdparties from obtaining court orders or approvals that are contrary toNortel's interests; reject, repudiate or terminate contracts; and (b)risks and uncertainties associated with: limitations on actionsagainst any Debtor during the Creditor Protection Proceedings; thevalues, if any, that will be prescribed pursuant to any restructuringplan to outstanding Nortel securities and, in particular, that Norteldoes not expect that any value will be prescribed to the NNC commonshares or the NNL preferred shares in any such plan; the delisting ofNNC common shares from the NYSE; and the delisting of NNC commonshares and NNL preferred shares from the TSX; and (ii) risks anduncertainties relating to Nortel's business including: the sustainedeconomic downturn and volatile market conditions and resultingnegative impact on Nortel's business, results of operations andfinancial position and its ability to accurately forecast its resultsand cash position; cautious capital spending by customers as a resultof factors including current economic uncertainties; fluctuations inforeign currency exchange rates; any requirement to make largercontributions to defined benefit plans in the future; a high level ofdebt, arduous or restrictive terms and conditions related toaccessing certain sources of funding; the sufficiency of workforceand cost reduction initiatives; any negative developments associatedwith Nortel's suppliers and contract manufacturers including Nortel'sreliance on certain suppliers for key optical networking solutionscomponents and on one supplier for most of its manufacturing anddesign functions; potential penalties, damages or cancelled customercontracts from failure to meet contractual obligations includingdelivery and installation deadlines and any defects or errors inNortel's current or planned products; significant competition,competitive pricing practices, industry consolidation, rapidlychanging technologies, evolving industry standards, frequent newproduct introductions and short product life cycles, and other trendsand industry characteristics affecting the telecommunicationsindustry; any material, adverse affects on Nortel's performance ifits expectations regarding market demand for particular productsprove to be wrong; potential higher operational and financial risksassociated with Nortel's international operations; a failure toprotect Nortel's intellectual property rights; any adverse legaljudgments, fines, penalties or settlements related to any significantpending or future litigation actions; failure to maintain integrityof Nortel's information systems; changes in regulation of theInternet or other regulatory changes; and Nortel's potentialinability to maintain an effective 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:NortelMediaJay Barta(972) 685-2381jbarta(at)nortel.comNortelInvestors(888) 901-7286 or (905) 863-6049investor(at)nortel.comwww.nortel.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.07.2009 - 21:39 Uhr
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