Barry Artiste Op/Ed
Share in Nortel Stocks have been halted, which pretty much guarantees Bankruptcy is only minutes away once the trading floor opens for business today. Shares of Nortel, one of Canadas biggest Hi Tech firms reached a high of over $1,000 a share in 2000 and now are at a low of $0.40 cents a share. Nortel had a staff in 2000 of close to 20,000 worldwide and now are reduced to around 4,000 personnel. With the remaining lose buy out cash? Chance are they will be SOL.
The company’s board of directors reportedly met in Toronto Tuesday to assess the company’s future, just two days before the telecom firm is due to repay a $107-million interest debt on bonds.
“They don’t have $107 million dollars just to make an interest payment so the next logical step might be filing for bankruptcy protection or protection from its creditors,” BNN’s Michael Kane reported Wednesday.
The interest payment would amount to about 10 per cent of the company’s North American cash reserves.
Source: news.sympatico.msn.ctv.ca
Tags: Markets | Tech & Biz