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Almost the last of Nortel goes up for sale
22 September 2009
Nortel is to sell one of the last remaining parts of the old company — its packet core assets business. The company is to sell them by auction, after auctioning off almost everything else in the bankrupt business.
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The company has announced that it will auction the assets of its carrier networks business associated with the development of next generation packet core network components.
Nortel has set no date for the auction, but says it has filed requests with the US and Canadian courts to allow “qualified bidders” to submit offers.
Nortel, which went into bankruptcy protection in January 2009, has already agreed to sell its LTE and CDMA business to Ericsson for $1.1 billion and its enterprise communications division to Avaya for $915 million.
According to Nortel the packet core assets consist of “software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets”.
Nortel says it “also expects to grant the purchaser a non-exclusive license of relevant patent intellectual property”. Nortel’s patents may well soon be the only remaining asset the company retains.
It has already said that the proceeds of this and previous sales will not reach shareholders. Once debts are paid the shares will be cancelled. GTB