Feeds

Nortel UK goes into administration to save itself

Business as usual at stricken comms vendor

Application security programs and practises

Nortel UK, and most of the comms giant's European operation, has gone into administration a day after its Canadian parent filed for bankruptcy protection.

The company said yesterday that its US and Canadian businesses were seeking Chapter 11 bankruptcy protection. The UK firm will be overseen by overseen by Ernst and Young.

A press statement from Nortel Networks UK said:

On a global basis, adverse economic conditions have made the current capital structure of Nortel Networks Inc. unsustainable and it is imperative that the Group addresses its financial position and the legacy costs burdening its balance sheet, to overcome current challenges and reposition itself for the future. The Group concluded that the best way to effect this transformation was to undertake a restructuring process.

Nortel has 30,000 staff around the world and 2,000 in the UK.

Darryl Edwards, Nortel's Europe, Middle East and Africa, was scheduled to hold a webcast at midday today with Alan Bloom and Stephen Harris of Ernst & Young to tell staff what the decision meant for them.

According to the internal email from Edwards seen by The Register, the move into administration is designed to allow the root-and-branch restructuring of the company and its finances. "Nortel plans to emerge from this process as a more focussed, financially sound and competitive Company", it says.

The mail also said: "This is the start of a new journey for us and I'm counting on your patience and continued cooperation."

It is hoped the move will not have much impact on day to day business at the firm.

Nortel businesses in the following countries will be subject to the same reorganisation process: Austria, Belgium, Czech Republic, Finland, France, Germany, Hungary, Ireland, Italy, Netherlands, Poland, Portugal, Romania, Slovenia, Spain and Sweden. Denmark and Saudi Arabai, under UK ownership, are also included. There will be differences in each country based on local employment and other laws. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.