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.