How bad are things for Nortel?
Things are pretty bad, or more accurately, pretty bad for Nortel creditors. When it filed for bankruptcy, Nortel assets and debts were pretty close — assets of $11.6 billion vs. debt of $11.8 billion. Estimates this week put the assets closer to $2 billion. Nortel is seeking protection from its creditors under which the courts will decide the best way to reorganize the company and pay its creditors as much of what is owed as possible. The court is allowing the sell-off, and the proceeds could come up about $9 billion short.
