Nortel files for bankruptcy
(Associated Press WorldStream Via Acquire Media NewsEdge) TORONTO_Technology giant Nortel Networks Corp. has filled for bankruptcy protection.
North America's biggest maker of telecommunications equipment has been dealing with a sharp drop in orders from phone company clients. Creditor protection would give the company more opportunities to explore restructuring options or sell off some of its assets.
Nortel stock, which once traded at more on a pre-split basis at more than $1,200 Canadian a share during the tech bubble, closed Tuesday at 38.5 Canadian cents a share on Canada's main stock exchange.
Last month, it was reported that the company hired legal advisers to explore bankruptcy court protection from creditors, but Nortel said at the time that a filing was not imminent.
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