Feeds

Old guard want to save Nortel

Need some cash, though

Boost IT visibility and business value

A consortium of old guard Nortel execs led by ex-CEO Bob Ferchat believe they can save Nortel, if only the Canadian government will help them out with a bit of funding - say about $1bn.

Bob Ferchat is supported by other senior Nortel figures - including David Paterson, David Mann and Ian Craig. Ferchat is an ex-president of the networking and telecom kit maker.

The group has some private funding in place but is also asking the Canadian government for money. It has met at least two Canadian ministers. If the money was forthcoming Nortel would keep about three quarters of its business and concentrate on building a fast broadband network for Canada, CBC reports.

Aside from an appeal to Canadian patriotism the group also have a cunning way to sweeten the pill for the government. Nortel has earned several million Canadian dollars in tax credits because of all the research and development money it has spent over the years. The group wants the government to change the rules, which require companies to be profitable before spending credits, for instance, so this money can be used to build the national network.

The high-speed network is being plugged as a national infrastructure project, like Australia's, which will help spark a Canadian tech renaissance, the Ottawa Citizen reports.

This is in stark opposition to Nortel's current strategy of selling itself off to various different companies in order to raise as much cash as possible for creditors.

Nortel has been brought low by a series of problems, ending with telcos reducing spending as the credit crunch began to bite late last year. In 2007 the company paid $35m in damages to shareholders to settle allegations that it inflated revenues between 2000 and 2003.

The company has limped from disaster to disaster - it only just missed going bust in the dot-com crash. In the second three months of 2001 Nortel lost a record-breaking $19.6bn. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.