At the end of December, we wrote about Nortel’s race to zero, today we hear word that the company has filed Bankruptcy protection in Canada, the US, and Europe along with several of its affiliates. It will be a struggle for Nortel to reorganize and return from the stiff requirements of bankruptcy in this economy. Nortel hasn’t see truly happy sales numbers since the late 90s. Today, it faces competitors which offer similar services at dramatically lower prices.
The news comes as a big blow to the Canadian economy where Nortel was once worth 35% of the Toronto Stock Exchange. Today, the company faces the very real possibility of being delisted from the exchange.