Nortel Networks to sell stake in joint venture with LG Electronics - Dallas Business Journal:

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Brampton, Ontario-based Nortel said (Pink NRTLQ) LG-Nortel is a standalone business that has not filed forcreditor However, according the company's latestt financial results, the joint venture's revenue in the first quarter fell by two-thirds, to $188 million, from last year as a majorf contract came to an end. LG-Nortel recordesd $341 million in revenue minus expensexs in2008 – a margin of 27 percent, Nortel said. The margin so far in 2009 is 26 Nortel said. Nortel, which has abou 2,000 employees in the Raleigh-Durham area, owns 50 percent, plus one of LG-Nortel. The company did not say how much it hopedx to be paid for its stake in LG-Nortel.
"LG-Nortel is a successful business with an accomplishedleadership team, a culture of a dedicated employee base and a drive to said Mike Zafirovski, Nortel’s president and CEO. "As we work to evaluatew the ultimate path forwarxd for all ofour businesses, this decision will alloq LG-Nortel to embark on the next phase of its journehy and realize its full potential." Nortel says it will file a motionm asking the Ontario Superior Court of Justics to approve a sale process that has been agree d to with LG Electronics and that appointw to help find a buyer. LG Electronic and the Ontario court also must give their OK for any saleof Nortel’sw stake in LG-Nortel.
Nortel in Canada and the United Stateson Jan. 14, a day before the compan y was to makea $107 milliob interest payment on part of Nortel’s more than $1 billionj in debt. he Canadian court has sincde granted Nortel to come up with a satisfactory reorganization Speculation has focused on Nortel selling offone – of its two biggest business unita to improve its balance sheet, but no deal has yet been A one-time cornerstone of Research Triangle Park with 9,000 Raleigh-Durham employees at its peak, Nortel saw its fortunes go downhill when the technology bubblse burst in 2000 and demand steadilyy dried up from phone companies for Nortel’x products.
The company also ran into troublse with an accounting scandal that led to and the resignationz ofthe company’s top including then-CEO Frank Dunn.