Nortel Weighs Ch. 11 Amid Credit Crunch, Tight Sales

Law360, New York (December 10, 2008, 12:00 AM EST) -- Telecommunications-equipment maker Nortel Networks Corp. reportedly has sought legal advice about a possible bankruptcy court filing, and the company may also ask the Canadian government for assistance to help it stay afloat.

With sales going down and the credit crunch making it difficult to sell off assets, Toronto-based Nortel is exploring Chapter 11 protection just in case its current restructuring plan fails, according to the Wall Street Journal, which cited people familiar with the situation.

Meanwhile, Nortel is looking into the possibility of state aid, although...
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