Telecom equipment maker Nortel Networks Corp. said Thursday that its loss shrank in the second quarter on smaller reorganization costs.
The Toronto company that once employed thousands of people at a campus in Research Triangle Park, N.C. is in the midst of selling off its assets as it works to restructure under Canadian bankruptcy. The company said it has now sold off all of its businesses, generating roughly $3.2 billion in net proceeds that will go toward paying back its creditors.
In its report, Nortel noted:
- “Through the creditor protection process, Nortel has sold all of its businesses generating approximately $3.2 billion in net proceeds for the benefit of its creditors, and preserving 16,000 jobs for employees with the purchasers of the businesses
- “In addition, completed the sale of our remaining patents and patent applications to a consortium consisting of Apple, EMC, Ericsson, Microsoft, Research in Motion and Sony (collectively, the Consortium) for a cash purchase price of $4.5 billion
- “Focus remains on maximizing value for stakeholders, including the provision of transition services to purchasers, sale of remaining assets, wind down of global operations and entities, ongoing cost reduction and other significant work toward the conclusion of the Creditor Protection Proceedings”
Nortel reported a loss of $115 million, or 23 cents a share, for the three months ended June 30. That compares with a loss of $1.6 billion, or $3.15 a share, in the prior-year quarter.
The loss in the latest quarter included interest expense of $80 million. The prior-year period included reorganization items of $1.5 billion and interest expense of $75 million, among other costs.
Quarterly revenue was $1 million, down from $145 million a year earlier, when the company sold off U.S. subsidiaries.
Read the financial report here.
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