Nortel: Not mulling over bankruptcy

Nortel: Not mulling over bankruptcy

Vendor rejects claims that it is in a precarious position, despite recent job cuts

Nortel claims it hasn't sought advice for bankruptcy

Nortel claims it hasn't sought advice for bankruptcy

Nortel has rejected media claims it has sought advice for bankruptcy, saying it is in a good position despite a recent restructuring.

After a cost cutting exercise that could see the vendor slash its work force by 10 per cent, or up to 5000, a media report claimed Nortel had hired lawyers to consider whether it should seek bankruptcy protection.

But in a global release, the vendor claimed its goals and position had not changed since November 10, when it announced the restructure.

“Just two weeks ago, Standard & Poor's reaffirmed our credit rating, stating 'Nortel should be able to sustain adequate levels of liquidity in the next 12-18 months',” the statement said.

“Nortel is a viable partner for the long term. We have no debt maturity until 2011, and we are preserving and strengthening our cash position.”

A local representative for Nortel said the Australian business was not under threat and the outlook from the Australian business was positive.

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Tags norteljob cutsbankruptcy

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