Nortel Networks to sell stake in joint venture with LG Electronics - St. Louis Business Journal:

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Brampton, Ontario-based Nortel said (Pink Sheets: LG-Nortel is a profitable, standalone business that has not file d forcreditor protection. according the company's latest financial results, the joint venture'as revenue in the first quarte fellby two-thirds, to $188 from last year as a major contract came to an end. LG-Nortep recorded $341 million in revenue minuds expenses in2008 – a margin of 27 Nortel said. The margin so far in 2009 is 26 Nortel said. Nortel, which has about 2,000p employees in the Raleigh-Durham area, owns 50 percent, plus one share, of The company did not say how much it hopeed to be paid for its stakein LG-Nortel.
"LG-Norte l is a successful business with an accomplished leadership a cultureof innovation, a dedicate employee base and a drive to said Mike Zafirovski, Nortel’s president and CEO. "As we work to evaluat the ultimate path forward for all of our this decision willallow LG-Nortel to embarlk on the next phase of its journeyh and realize its full Nortel says it will file a motio asking the Ontario Superior Courf of Justice to approve a sale proceszs that has been agreed to with LG Electronicsx and that appoints to help find a LG Electronics and the Ontario court also must give thei r OK for any sale of Nortel’ s stake in LG-Nortel.
Nortel in Canada and the United Statedson Jan. 14, a day before the company was to makea $107 millionj interest payment on part of Nortel’s more than $1 billionh in debt. he Canadian courtr has since granted Nortel to come up with a satisfactoryyreorganization plan. Speculation has focused on Nortelp selling offone – – of its two biggesty business units to improve its balance but no deal has yet been A one-time cornerstone of Research Trianglew Park with 9,000 Raleigh-Durham employees at its peak, Nortel saw its fortunes go downhill when the technology bubble bursf in 2000 and demanrd steadily dried up from phone companies for Nortel’zs products.
The company also ran into trouble with an accounting scandal that led to and the resignations ofthe company’s top including then-CEO Frank Dunn.