According to the Canadian Press news service, insolvent Nortel Networks Corp. says it has sold all of its businesses and remaining patents, generating proceeds of US$7.8 billion and is working to wrap up the creditor protection process. The now defunct telecom company, which reports in U.S. dollars, said as of the second quarter ended June 30, it had $688 million in cash, plus a restricted cash balance of $7.6 billion consisting mainly of proceeds from its divestment's.
The company said it will no longer continue provide quarterly financial statements after the third quarter as it winds down operations.
The Ontario Superior Court of Justice last month granted Nortel and its subsidiaries an extension under the Companies’ Creditors Arrangement Act until Oct. 31.
Since Nortel declared bankruptcy in early 2009, the company has sold US$3.2 billion of operating units — bringing the total value of the company’s sell-off to US$7.8 billion — one of the biggest asset sales in Canadian history. Nortel once employed 95,000 people around the world.
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