TORONTO – Nortel Networks, which has been selling off all of its operations under court protection from creditors since 2009, announced Friday it lost $115 million (U.S.) in its latest quarter.
In selling off all of its businesses Nortel has generated 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.
Nortel sold the last of its assets on July 1 that included more than 6,000 patents, many involving its wireless technology for $4.5 billion in cash to a consortium that included consortium consisting of Apple, EMC, Ericsson, Microsoft, and Research in Motion and Sony.
Nortel says its 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.
It reported a cash balance as of June 30, 2011 of $790 million, compared to $775 million as of March 31, 2011, plus restricted cash balance of $3.2 billion consisting primarily of divestiture proceeds.
