Nortel files for bankruptcy
Cnet.com writes, "Nortel Networks, once a high-flying telecommunications equipment maker, filed for Chapter 11 bankruptcy protection Wednesday.
Nortel has been recent credit crunch may end up as the death knell for the company, making it difficult for Nortel to fund its operations. At the same time, customers have also pulled back drastically on spending for the company’s voice-only equipment.
For the past several months, Nortel’s management team has been trying to cut spending. The company has also put some of its assets up for sale in an attempt to survive. But mounting debt payments and a steep drop in revenue appears to have caught up with the company.
The most pressing issue for the Toronto, Ontario-based company is paying the interest on its $3.8 billion in bond debt. Nortel faced a $107 million bond interest payment this week, The Wall Street Journal reported."
