Telecom Giant Nortel Files For Bankruptcy

Canadian tech giant Nortel Networks Corp. has filed for bankruptcy protection, which is notable for two reasons:

A) It's the first the first major technology company to be forced into bankruptcy since the global recession began, and

B) It's further evidence of the multi-national nature of the economic contagion.

Nortel is North America's biggest maker of telecom equipment and had seen a sharp decline in orders from phone companies.

The bankruptcy filing comes one day before Nortel is due to repay a $107 million interest debt on bonds.

The Toronto stock exchange halted trading of Nortel's stock.

-- Frank Ahrens
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