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http://www.allaboutnortel.com/2008/12/19/nikos-bankruptcy-protection-has-appeal/ -
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With the disadvantage to shareholders, customers, management, taxpayers etc...
Damned if they do, damned if they don't?
I don't agree with the reason as there are bigger problems than paying interest but the time is right.
Btw readers of AAN know that Nortel ‘s been prepared to use BK as we did read about that here.
How long it would take to destroy all assets if ...Nortel was not pushed into BK?
Selling MEN for cash would not fix Nortel's cash problem, as at this time Mike does not know what to do. When first estimated in September MEN was of value about $800 mill.
Since then the value has collapsed with the stock collapsing.
Just this week NT stock lost another 50%!
Mike's Z Turn around Plan was good only for Mike and is in the trash basket now!! The new plan from Nov 10 does not address collapsing revenues_new orders!
Kris Thompson was right when he said
""""""
Filing for bankruptcy protection would enable Nortel to renegotiate with suppliers and leaseholders and perhaps get a government waiver on funding a pension deficit. It would also let the company offer bondholders a deal where they receive a combination of cash and new equity, but common shareholders would be left out in the cold.
http://www.theglobeandmail.com/servlet/A...
REALLY SMART...great for CANADA and the world economy....RIGHT!!!!!!!
TURN IT AROUND AND MAKE OUR MONEY BACK!!!!|
DO NOT FILE FOR BK!!!!! THINGS WERE WAY WORSE IN 01 and 02!!!!!
Your website became totally useless now as the amount of rich discussions are over. NT employees (or under severance package) are afraid of retaliation, thus they wont post if they have to sign up/
Anyway, you will have to pick another company as NT will be gone by Jan 15th. Unfortunately the sale to NSN went dead... BK is the only exit now... Enterprise is now for sale.
The CFO is running NT as MZ has been asked to take a seat on the second row.
bye
Your website became totally useless now as the amount of rich discussions are over. NT employees (or under severance package) are afraid of retaliation, thus they wont post if they have to sign up/
Anyway, you will have to pick another company as NT will be gone by Jan 15th. Unfortunately the sale to NSN went dead... BK is the only exit now... Enterprise is now for sale.
The CFO is running NT as MZ has been asked to take a seat on the second row.
bye
----
re
OK this post has been here for a while
Let us look at that post again
the post says CEO is replaced by CFO
and acquisitions failed
Why don't you guys try to make that guy run away as a liar or just speculate that he is right?
Is that blog for discussion or just to post Nortel's propaganda and rumors?
Let me tell you, Mark Evans was wrong in that post attacking Mark Sue for his target of Zero for NT stock!
The stock is almost there!
Mark Evans was wrong about IBM acquisition, the rumors, and Mark Evans has not admitted it yet!
I wonder how it was possible Mark Evans posted the IBM rumor?
Mark, open your eyes, who pulled your leg on that?
I told you so few hours after you posted that crap!
O yes, post more of The Psychiatrist nonsense here and we all'l be sick!
The filing is the line in the sand separating the time where shareholders own the company and the time where debt holders own the company. It would therefore make sense that debt holders would want such line to be drawn, not the shareholders.
Since debt holders aren't the ones who will draw the line because they don't want to get the interest payment coming to them.
They would much rather get that interest payment first and then draw the line. So unless this is a situation where you have senior debt holders pushing for it because the payment is coming to junior debt holders (and i don't believe that's the situation here) this line of thinking leads nowhere.
Having said that, there are other reasons why debt holders would want to push NT into BK asap. Mostly because NT continues to burn cash.
Of course employees continue to get paid, especially those in the Accounting dept. Kidding aside, considering that NT implements a significant time lag between layoff announcements and actual empty desks resulting from those announcements, I wouldn't lose any sleep on the matter when mgmt and the BoD finally declare BK. As for suppliers and other creditors, that is a different story.
I'm not an expert but common sense tells me that severance would be significantly less during BK including for upper mgmt as their contracts could be deemed void. The pension fund is insured but may be conditional up to a certain amount.
1. Declare chapter 11. Hire consultants to deal with the paper work and to represent NT before the bankrupcy judge.
2. Layoff a majority of remaining employees without severance. Hire consultants to write the no-severane layoff notice sent to employees.
3. Tell the pensioners they are out of luck. Hire a consulting firm that specializes in this sort of wet work.
4. Pay off any lawyers and consultants who have not yet been handsomely paid.
5. Pay off the bond holder's with the minimum amount allowed under the code.
6. Pay off the preferred-stock holders.
7. Emerge from chapter 11 with as much of the 2.6 billion in cash left as possible.
8. Grant stock options to all the leaders in the new NTP (NorTel Post-bankruptcy) shares. These options are incentives to keep key leaders at Nortel during this tough transition.
9. Send a memo to the few regular employees that are left that they should be extra vigilant in their use of offices supplies. Also under no circumstances should they be taking pens or pencils home. New security search procedures to be implemented to facilitate this world class asset preservation program. Hire Blackwater to consult on this project.
10. NTP (NorTel Post-bankruptcy) is ready to be the acquisition target of a major competitor (preferably one in China. The leadership likes to vacation there.)
11. Hire some consultants to help negotiate and take care of the merger mechanics. Merger price of the NTP shares is very negiotiable. Just make sure the leadership stock options are in the money.
12. Make sure the merger terms include enhanced retirement packages for all the leaders (i.e. Bill Owens size packages). Hire executive compenstation consultants to help with this.
13. Plan for Big merit bonuses for all the leaders. Having successfully navigated the company through bankruptcy and a merger its time for another big payday. Throw in a new horse for Pavi (is Midnight Lute up for sale?)
14. Hire some consultants to organize retirement parties for all the execs who are now ready to "move on". Plan to have Jack Welch jump out of a cake at Mike Z's party.
15. Enjoy retirement until one of the Gang gets on with some other company and gives the signal for the rest to come in and work some more six-sigma magic.