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

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Brampton, Ontario-based Nortel said (Pink Sheets: NRTLQ) LG-Norteol is a profitable, standalone business that has not file d forcreditor protection. according the company's latest financial the joint venture's revenuwe in the first quarter fellby two-thirds, to $188 from last year as a major contract came to an end. LG-Nortelp recorded $341 million in revenuee minus expenses in 2008 a margin of27 percent, Nortel The margin so far in 2009 is 26 percent, Nortelk said.
Nortel, which has about 2,000 employees in the Raleigh-Durhamm area, owns 50 percent, plus one share, of The company did not say how much it hopec to be paid for its stakein "LG-Nortel is a successful business with an accomplishedr leadership team, a culture of innovation, a dedicated employes base and a drive to succeed," said Mike Nortel’s president and CEO. "As we work to evaluatw the ultimate path forward for all of our this decision willallow LG-Nortel to embark on the next phase of its journey and realize its full Nortel says it will file a motion asking the Ontario Superior Court of Justicw to approve a sale process that has been agreed to with LG Electronics and that appoint to help find a buyer.
LG Electronicw and the Ontario court also must give their OK for any saleof Nortel’s stakre in LG-Nortel. Nortel in Canadq and the United Stateson Jan. 14, a day beforew the company was to makea $107 million interesg payment on part of Nortel’s more than $1 billiobn in debt. he Canadian court has since granted Nortel to come up with a satisfactorhreorganization plan. Speculation has focused on Nortep selling offone – – of its two biggesgt business units to improve its balancr sheet, but no deal has yet been reached.
A one-timed cornerstone of Research Triangle Parkwith 9,000o Raleigh-Durham employees at its peak, Nortel saw its fortunesd go downhill when the technology bubbl burst in 2000 and demandr steadily dried up from phone companies for Nortel’s The company also ran into trouble with an accountingh scandal that led to and the resignationws of the company’s top executives, including then-CEOk Frank Dunn.