SYS-CON UK Authors: Salvatore Genovese, Jeremy Geelan, Jamie Matusow

News Feed Item

Minister of Industry Responds to Nortel Networks' Restructuring Under Companies' Creditors Arrangement Act

OTTAWA, ONTARIO -- (Marketwire) -- 01/14/09 -- On January 14, 2009, Nortel Networks announced that it is seeking an order to initiate a court-supervised restructuring under the Companies' Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice. The Honourable Tony Clement, Minister of Industry, made the following statement:

"Nortel Networks is known as a leader in the field of information and communications technologies and for its research and development in Canada. The decision to file for creditor protection was made by its Board of Directors in an effort to turn the company around. The Government of Canada appreciates the importance of the telecommunications industry to our economy and will continue to work with Nortel during its restructuring through Export Development Canada (EDC). EDC has agreed to provide up to $30 million in short-term financing through its existing bonding facility and is open to discussing with Nortel post-filing financing in conjunction with other financial institutions. It is important to note that Nortel is filing for court-supervised restructuring under the CCAA, not bankruptcy. Nortel has stated that it has every intention of emerging from this restructuring under the CCAA as a viable business. We will monitor its progress closely."

The CCAA allows for a court-administered process that gives corporations the opportunity to restructure their business so that they can continue to be a viable and sustainable entity contributing to Canada's economy.

Office of the Honourable Tony Clement
Minister of Industry
Pema Lhalungpa - Press Secretary

Industry Canada
Media Relations

Export Development Canada
Phil Taylor

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.