Under the deal, expected to close this year, Nortel Networks Limited and Nortel Networks Inc will sell assets associated with the development of next generation packet core network components (excluding legacy packet core components for Nortel's GSM and UMTS businesses).

The company said the assets include software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property.

Nortel Networks also stated that its common shareholders or preferred shareholders of NNL will not receive any value from the creditor protection proceedings and expects the proceedings to result in the cancellation of these equity interests.

Toronto-based Nortel filed for bankruptcy protection in the US and Canada earlier this year. It has been selling some of its assets as part of the creditor protection proceedings. It has obtained US and Canadian court approvals for the sale of some of its assets to Avaya and Ericsson for a combined value of $2.05 billion. In June, Nokia Siemens Networks agreed to acquire Nortel's CDMA business and LTE assets for $650m. Earlier this month, Ciena offered to acquire Nortel's Metro Ethernet Networks business.

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