TORONTO – Nortel Networks has pushed back the auction date for the sale of its global system for mobile communications business by a little over a week.
The new auction date is scheduled for November 20, 2009, and qualified bidders must submit offers by November 16.
Nortel announced earlier this month that it plans to sell substantially all of its global GSM/GSM-R business by ‘open auction’, including the transfer of specified patents predominantly used in the GSM business and granting of non-exclusive licenses of other relevant patents.
The company also announced that it received court approval to sell certain assets associated with the development of next generation packet core network components to Hitachi for U.S.$10million.
Lastly, Nortel has obtained a further extension of its stay period under the Companies’ Creditors Arrangement Act (CCAA). The purpose of the stay of proceedings is to allow the Nortel companies to consummate planned sales, continue to advance in discussions with interested parties for the sale of its other businesses, continue to assess other restructuring alternatives if it is unable to maximize value through sales and file a plan of arrangement.
