Nortel Networks goes into bankruptcy

Nortel Networks goes into bankruptcy
The long, steady fall from grace of Nortel Networks hit bottom Wednesday when the phone-equipment maker filed for Chapter 11 bankruptcy protection in the United States, along with seeking protection from creditors in its home base of Canada and in Europe.
Nortel (NYSE: NT), whose U.S. base in Richardson employs at least 3,600 people, made the filing in Delaware a day before the deadline for the company to make a $107 million interest payment.
The company’s staffing levels in Richardson have dwindled over the years as Nortel went through a series of restructurings aimed at coping with a tough business climate.

Nortel is Sponsor for the 2012 Olympc Games
The Toronto-based technology giant signed up as one of London's domestic "tier-one" sponsors in July, committing to provide about $58 million in cash and the network infrastructure to operate communications with partner British Telecom.
Nortel, which is also a supplier for the 2010 Vancouver Winter Olympics along with Bell Canada, filed for court protection on Wednesday, a day before the firm is due to repay a $107 million interest debt on bonds.