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.
January 14, 2009; 9:33 AM ET
Categories: The Ticker | Tags: Nortel, bankruptcy, recession
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