(Source: MARKETWIRE)
Nortel(1) Networks Corporation (OTCBB: NRTLQ) today confirmed that
it is in advanced discussions with Ciena Corporation for the planned
sale of substantially all assets within its Optical Networking and
Carrier Ethernet businesses globally. The outcome of these
discussions is uncertain and subject to negotiation of definitive
agreements. Any agreements would be subject to a competitive bidding
process to be approved by the United States Bankruptcy Court for the
District of Delaware and the Ontario Superior Court of Justice.
About Nortel
Nortel delivers communications capabilities that make the promise of
Business Made Simple a reality for our customers. Our next-generation
technologies, for both service provider and enterprise networks,
support multimedia and business-critical applications. Nortel's
technologies are designed to help eliminate today's barriers to
efficiency, speed and performance by simplifying networks and
connecting people to the information they need, when they need it.
For more information, visit Nortel on the Web at www.nortel.com. For
the 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", "plans", "envisions",
"seeks" and other similar language and are considered forward-looking
statements or information under applicable securities laws. These
statements are based on Nortel's current expectations, estimates,
forecasts and projections about the operating environment, economies
and markets in which Nortel operates. These statements are subject to
important assumptions, risks and uncertainties that are difficult to
predict, and the actual outcome may be materially different. Nortel's
assumptions, although considered reasonable by Nortel at the date of
this press release, may prove to be inaccurate and consequently
Nortel's actual results could differ materially from the expectations
set out herein.
Actual results or events could differ materially from those
contemplated in forward-looking statements as a result of the
following: (i) risks and uncertainties relating to Nortel's Creditor
Protection Proceedings including: (a) risks associated with Nortel's
ability to: stabilize the business and maximize the value of Nortel's
businesses; obtain required approvals and successfully consummate
pending and future divestitures; successfully conclude ongoing
discussions for the sale of Nortel's other assets or businesses;
develop, obtain required approvals for, and implement a court
approved plan; resolve ongoing issues with creditors and other third
parties whose interests may differ from Nortel's; generate cash from
operations and maintain adequate cash on hand in each of its
jurisdictions to fund operations within the jurisdiction during the
Creditor Protection Proceedings; access the EDC Facility given the
current discretionary nature of the facility, or arrange for
alternative funding; if necessary, arrange for sufficient
debtor-in-possession or other financing; continue to have cash
management arrangements and obtain any further required approvals
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 to satisfy claims,
including Nortel's ability to sell assets to satisfy claims against
us; maintain R&D investments; realize full or fair value for any
assets or business that are divested; utilize net operating loss
carryforwards and certain other tax attributes in the future; avoid
the substantive consolidation of NNI's assets and liabilities with
those of one or more other U.S. Debtors; attract and retain customers
or avoid reduction in, or delay or suspension of, customer orders as
a result of the uncertainty caused by the Creditor Protection
Proceedings; maintain market share,
as competitors move to capitalize on customer concerns; operate
Nortel's business effectively under the new organizational structure,
and in consultation with the Canadian Monitor the U.S. Creditors'
Committee and a proposed U.S. Officer, and work effectively with the
U.K. Joint Administrators, French Administrator and Israeli Joint
Administrators in their respective administration of the EMEA
businesses subject to the Creditor Protection Proceedings; continue
as a going concern; actively and adequately communicate on and
respond to events, media and rumors associated with the Creditor
Protection Proceedings that could adversely affect Nortel's
relationships with customers, suppliers, partners and employees;
retain and incentivize key employees and attract new employees, as
may be needed; successfully implement Nortel's new organizational
structure to most effectively continue with the sales of Nortel's
businesses and complete integration processes with acquiring
companies and continue with Nortel's restructuring activities;
retain, or if necessary, replace major suppliers on acceptable terms
and avoid disruptions in Nortel's supply chain; maintain current
relationships with reseller partners, joint venture partners and
strategic alliance partners; obtain court orders or approvals with
respect to motions filed from time to time; resolve claims made
against Nortel in connection with the Creditor Protection Proceedings
for amounts not exceeding Nortel's recorded liabilities subject to
compromise; prevent third parties from obtaining court orders or
approvals that are contrary to Nortel's interests; reject, repudiate
or terminate contracts; and (b) risks and uncertainties associated
with: limitations on actions against any Debtor during the Creditor
Protection Proceedings; the values, if any, that will be prescribed
pursuant to any court approved plan to outstanding Nortel securities
and, in particular, that Nortel does not expect that any value will
be prescribed to the NNC common shares or the NNL preferred shares in
any such plan; the delisting of NNC common shares from the NYSE; and
the delisting of NNC common shares and NNL preferred shares from the
TSX; and
(ii) risks and uncertainties relating to Nortel's business including:
the sustained economic downturn and volatile market conditions and
resulting negative impact on Nortel's business, results of operations
and financial position and its ability to accurately forecast its
results and cash position; cautious capital spending by customers as
a result of factors including current economic uncertainties;
fluctuations in foreign currency exchange rates; any requirement to
make larger contributions to defined benefit plans in the future; a
high level of debt, arduous or restrictive terms and conditions
related to accessing certain sources of funding; the sufficiency of
workforce and cost reduction initiatives; any negative developments
associated with Nortel's suppliers and contract manufacturers
including Nortel's reliance on certain suppliers for key optical
networking solutions components and on one supplier for most of its
manufacturing and design functions; potential penalties, damages or
cancelled customer contracts from failure to meet contractual
obligations including delivery and installation deadlines and any
defects or errors in Nortel's current or planned products;
significant competition, competitive pricing practices, industry
consolidation, rapidly changing technologies, evolving industry
standards, frequent new product introductions and short product life
cycles, and other trends and industry characteristics affecting the
telecommunications industry; any material, adverse affects on
Nortel's performance if its expectations regarding market demand for
particular products prove to be wrong; potential higher operational
and financial risks associated with Nortel's international
operations; a failure to protect Nortel's intellectual property
rights; any adverse legal judgments, fines, penalties or settlements
related to any significant pending or future litigation actions;
failure to maintain integrity of Nortel's information systems;
changes in regulation of the Internet or other regulatory changes;
and Nortel's potential inability to maintain an effective risk
management strategy.
For additional information with respect to certain of these and other
factors, see Nortel's Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2009 and June 30, 2009 and Annual Report on Form 10-K
for the year ended December 31, 2008 and other securities filings
with the United States Securities and Exchange Commission. Unless
otherwise required by applicable securities laws, Nortel disclaims
any intention or obligation 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 Nortel
Networks.
Contacts:
Nortel
Bo Gowan
+1-972-685-8278
bogowan@nortel.com
Nortel
Matthew Wray
+852-2100-2238
wraym@nortel.com
Nortel
Greta Brown
+44-(0)1628-432968
gretab@nortel.com
www.nortel.com
SOURCE: Nortel
A service of YellowBrix, Inc.
