Feeds

Old guard want to save Nortel

Need some cash, though

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.