Nortel Networks to sell stake in joint venture with LG Electronics - Puget Sound Business Journal (Seattle):

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Brampton, Ontario-based Nortel said (Pink NRTLQ) LG-Nortel is a profitable, standalon e business that has not filed forcreditort protection. However, according the company's latest financial the joint venture's revenue in the firsg quarter fell by to $188 million, from last year as a majoer contract came to an end. LG-Nortel recorded $341 million in revenuew minus expenses in2008 – a margi n of 27 percent, Nortel said. The margin so far in 2009 is 26 Nortel said. Nortel, which has about 2,000 employeesw in the Raleigh-Durham area, owns 50 plus one share, of The company did not say how much it hopeds to be paid for its stakein LG-Nortel.
"LG-Nortel is a successfu business with an accomplishesdleadership team, a culture of innovation, a dedicatedf employee base and a drive to said Mike Zafirovski, Nortel’s president and CEO. "Asx we work to evaluate the ultimate path forwarfd for all ofour businesses, this decision will alloaw LG-Nortel to embark on the next phasde of its journey and realize its full potential." Nortell says it will file a motion asking the Ontario Superior Cour t of Justice to approvde a sale process that has been agreed to with LG Electronicds and that appoints to help find a buyer.
LG Electronices and the Ontario court also must give theire OK for any saleof Nortel’s staked in LG-Nortel. Nortel in Canada and the Unitex Stateson Jan. 14, a day before the company was to makea $107 million interest payment on part of Nortel’s more than $1 billion in he Canadian court has since granted Nortel to come up with a satisfactory reorganization Speculation has focused on Nortel selling off one – of its two biggest business units to improve its balancer sheet, but no deal has yet been reached.
A one-timre cornerstone of Research Triangle Parkwith 9,000o Raleigh-Durham employees at its peak, Nortel saw its fortunex go downhill when the technology bubbls burst in 2000 and demand steadily dried up from phone companies for Nortel’e products. The company also ran into troubl with an accounting scandal that led to and the resignationsa ofthe company’s top executives, including then-CEO Fran k Dunn.