Nortel asked for protection from creditors in an attempt to avoid bankruptcy and the end of its operations, which in recent years have been marked by financial difficulties.
Canadian company officials justify the situation by significantly reducing the number of orders registered over the past few months, which has made the company’s situation more difficult.
Over the past few years, Nortel has gone through legal proceedings and investigations by regulators related to its fragile financial situation and the management guidelines that have led it.
With the protection of creditors requested in the United States and Canada, the company hopes to have more time to study possible restructuring scenarios, while settling the debt of hundreds of thousands of dollars.
Nortel, once the largest Canadian company with a market capitalization of $ 366 billion, ended last Tuesday’s stock market session at $ 155 million.
Editorial note: The expression “billions per billion” has been replaced in the news, with regard to the company’s market capitalization.