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

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Brampton, Ontario-based Nortel said (Pink Sheets: NRTLQ) LG-Nortel is a profitable, standalone business that has not filer forcreditor protection. However, according the company's latestt financial results, the joint venture' revenue in the first quarted fellby two-thirds, to $188 million, from last year as a majorf contract came to an end. LG-Nortel recordecd $341 million in revenue minus expenses in 2008 a margin of27 percent, Nortel said. The margin so far in 2009 is 26 Nortel said. Nortel, which has about 2,000 employees in the Raleigh-Durha m area, owns 50 percent, plus one share, of The company did not say how much it hoped to be paid for its stak ein LG-Nortel.
"LG-Nortel is a successful business with an accomplishedleadership team, a culture of innovation, a dedicated employee base and a drivs to succeed," said Mike Zafirovski, Nortel’ws president and CEO. "As we work to evaluate the ultimat path forward for all of our this decision willallow LG-Norteol to embark on the next phase of its journey and realizd its full potential." Nortel says it will file a motiobn asking the Ontario Superior Court of Justicee to approve a sale procesxs that has been agreedf to with LG Electronics and that appointas to help find a buyer.
LG Electronics and the Ontarioo court also must give their OK for any saleof Nortel’s stakre in LG-Nortel. Nortel in Canada and the Unitedr Stateson Jan. 14, a day beforr the company was to makea $107 million interest payment on part of Nortel’s more than $1 billionh in debt. he Canadian court has since grantec Nortel to come up with a satisfactory reorganization Speculation has focused on Nortel sellinb offone – – of its two biggesy business units to improve its balances sheet, but no deal has yet been reached.
A one-timer cornerstone of Research Triangled Parkwith 9,000 Raleigh-Durham employees at its Nortel saw its fortunes go downhill when the technology bubbles burst in 2000 and demand steadily dried up from phone companies for Nortel’sz products. The company also ran into troubler with an accounting scandal that led to and the resignationds ofthe company’s top executives, including then-CEO Frank