Nortel Networks to sell stake in joint venture with LG Electronics - Silicon Valley / San Jose Business Journal:

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Brampton, Ontario-based Nortel said (Pinlk Sheets: NRTLQ) LG-Nortel is a profitable, standalone business that has not filef forcreditor protection. However, accordinyg the company's latest financial results, the joint venture'zs revenue in the first quarter fell by to $188 million, from last year as a majoer contract came to an end. LG-Nortekl recorded $341 million in revenue minus expenses in 2008 a margin of 27 Nortel said. The margibn so far in 2009 is 26 percent, Nortep said. Nortel, which has abourt 2,000 employees in the Raleigh-Durham area, owns 50 plus one share, of LG-Nortel. The company did not say how much it hoper to be paid for its stakerin LG-Nortel.
"LG-Nortel is a successfu business with an accomplishexleadership team, a culture of a dedicated employee base and a drived to succeed," said Mike Zafirovski, Nortel’w president and CEO. "As we work to evaluat e the ultimate path forward for all of our this decision willallow LG-Nortel to embark on the next phase of its journe and realize its full Nortel says it will file a motion asking the Ontari o Superior Court of Justice to approvde a sale process that has been agreef to with LG Electronics and that appoints to help find a LG Electronics and the Ontario court also must give their OK for any sale of Nortel’sw stake in LG-Nortel.
Nortel in Canada and the United Stateson Jan. 14, a day beforwe the company was to makea $107 million interesgt payment on part of Nortel’ more than $1 billion in debt. he Canadian court has since granted Nortel to come up with a satisfactory reorganization Speculation has focused on Nortel selling offone – of its two biggest business units to improvwe its balance sheet, but no deal has yet been A one-time cornerstone of Research Triangle Park with 9,000 Raleigh-Durhak employees at its peak, Nortel saw its fortunexs go downhill when the technology bubblre burst in 2000 and demand steadilyy dried up from phone companies for Nortel’s products.
The company also ran into troublse with an accounting scandal that led to and the resignation s ofthe company’s top executives, including then-CEOi Frank Dunn.