Editing Nortel (section)

==== Protection from creditors ====

On January 14, 2009, Nortel filed for protection from creditors, in the United States under [[Chapter 11, Title 11, United States Code|Chapter 11 of the United States Bankruptcy Code]], in Canada under the ''[[Companies' Creditors Arrangement Act]]'', and in the United Kingdom under the [[Insolvency Act 1986]].<ref name="PR-2009Jan"/><ref name="2009-ComputerWorld">{{cite news |last         = Ricknäs |first        = Mikael |title        = Nortel files for Chapter 11 bankruptcy protection |work         = Computerworld |publisher    = International Data Group |date         = January 14, 2009 |url          = http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9125922&source=NLT_BNA&nlid=1 |archive-url  = https://archive.today/20130102073849/http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9125922&source=NLT_BNA&nlid=1 |url-status   = dead |archive-date = January 2, 2013 |access-date  = January 15, 2009 }}</ref><ref name="2009Jan-NetworkWorld">{{cite news | last         = Greene |first        = Tim |title        = Nortel bankruptcy filings are last-ditch effort |work         = Network World |date         = January 14, 2009 |url          = http://www.networkworld.com/news/2009/011409-nortel-bankruptcy.html?hpg1=bn |archive-url  = https://web.archive.org/web/20110615012237/http://www.networkworld.com/news/2009/011409-nortel-bankruptcy.html?hpg1=bn |url-status   = dead |archive-date = June 15, 2011 |access-date  = January 15, 2009 }}</ref> Nortel was the first major technology company to seek bankruptcy protection during the [[2008 financial crisis]].<ref>{{cite news|url=http://www.jpost.com/Business/BusinessNews/Article.aspx?id=146314 |title=Canada's Nortel to sell itself off in pieces |work=Jerusalem Post |date=June 22, 2009 |access-date=March 12, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110604174308/http://www.jpost.com/Business/BusinessNews/Article.aspx?id=146314 |archive-date=June 4, 2011 }}</ref> Nortel had an interest payment of $107 million due the next day, approximately 4.6% of its cash reserves of approximately $2.3 billion.<ref name="2009Jan-CBC">{{Cite news |date=January 14, 2009 |title=Nortel Networks files for bankruptcy protection |work=[[Canadian Broadcasting Corporation]] |url=https://www.cbc.ca/news/business/nortel-networks-files-for-bankruptcy-protection-1.803001 |access-date=November 22, 2023 |archive-date=November 22, 2023 |archive-url=https://web.archive.org/web/20231122182555/https://www.cbc.ca/news/business/nortel-networks-files-for-bankruptcy-protection-1.803001 |url-status=live }}</ref> After the announcement, the share price fell more than 79% on the Toronto Stock Exchange. Export Development Canada agreed to provide up to C$30 million in short-term financing through its existing credit support facility with Nortel. The Canadian government resisted characterizing its position on Nortel as a bailout.<ref name="Not a bailout">{{cite news
| title=Canada government pledges to help Nortel
| url=https://www.reuters.com/article/idCAN1446286920090114
| work=Reuters
| date=January 14, 2009
| first=Randall
| last=Palmer
| access-date=July 1, 2017
| archive-date=November 24, 2020
| archive-url=https://web.archive.org/web/20201124050912/https://www.reuters.com/article/idCAN1446286920090114
| url-status=live
}}</ref>

Nortel initially hoped to re-emerge from bankruptcy, implementing a retention bonus plan in an effort to retain its top executives during the restructuring period. These bonuses, totaling US$45 million, were targeted at 1,000 executive positions.<ref name="NationalPost-2009Retention">{{cite news
 |last         = Hill
 |first        = Bert
 |title        = Nortel pays big bonuses to keep execs
 |work         = National Post
 |date         = March 1, 2009
 |url          = https://nationalpost.com/story.html?id=1342517
 |archive-url  = https://archive.today/20110104162146/http://www.nationalpost.com/story.html?id=1342517
 |url-status   = dead
 |archive-date = January 4, 2011
 |access-date  = March 3, 2010
}}</ref> At the end of January 2009, Nortel announced that it would be discontinuing its [[WiMAX]] business and its agreement with [[Alvarion]].<ref name="PR-WiMAXDiscontinue">{{cite press release
 |title       = Nortel Refines Focus of Carrier Business: Ends Joint Agreement with Alvarion for Mobile WiMAX
 |publisher   = Nortel Networks
 |date        = January 29, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100251997&locale=en-US
 |access-date  = January 31, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195211/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100251997&locale=en-US
 |archive-date = July 14, 2011
}}
</ref><ref name="TBJ-2009Jan">{{cite news
 | last = Drew
 | first = Jeff
 | title = Nortel getting out of WiMAX
 | work = Triangle Business Journal
 | publisher = American City Business Journals
 | date = January 30, 2009
 | url = http://www.bizjournals.com/triangle/stories/2009/01/26/daily68.html?ana=from_rss
 | access-date = January 31, 2009
 | archive-date = April 16, 2012
 | archive-url = https://web.archive.org/web/20120416020937/http://www.bizjournals.com/triangle/stories/2009/01/26/daily68.html?ana=from_rss
 | url-status = live
 }}</ref> Nortel subsequently sold its Layer 4–7 application delivery business to Israeli technology firm [[Radware]] for $18 million, after Radware had initially placed a [[stalking horse bid]].<ref name="RadwareNortel">{{cite web
 | title = Radware buys Nortel product line
 | work = Globes [online]
 | date = February 22, 2009
 | url = http://www.globes.co.il/serveen/globes/docview.asp?did=1000427704&nl=1380
 | access-date = February 21, 2009
 | archive-date = March 5, 2012
 | archive-url = https://web.archive.org/web/20120305235033/http://www.globes.co.il/serveen/globes/docview.asp?did=1000427704&nl=1380
 | url-status = live
 }}</ref><ref name="RadwarePurchase">{{cite press release
 |title       = Nortel Completes Divestiture of Certain L4-7 Data Assets to Radware
 |publisher   = Nortel Networks
 |date        = March 31, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |access-date  = July 25, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073612/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |archive-date = December 24, 2009
}}</ref> Nortel had acquired the application switch product line in October 2000 when it purchased Alteon WebSystems.<ref name="PR-ApplicationDelivery">{{cite press release
 |title       = Nortel to Divest Layer 4–7 Data Portfolio: Enters into Asset Purchase Agreement with Radware
 |publisher   = Nortel Networks
 |date        = February 19, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |access-date  = February 22, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073612/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |archive-date = December 24, 2009
}}
</ref>