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

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Brampton, Ontario-based Nortel said (Pink NRTLQ) LG-Nortel is a standalone business that has not filed forcreditor protection. However, accordinfg the company's latest financial results, the joint venture's revenuse in the first quarter fell by to $188 million, from last year as a majod contract came to an end. LG-Nortel recorded $341 millio in revenue minus expense in2008 – a margin of 27 Nortel said. The margi so far in 2009 is 26 Nortel said. Nortel, which has about 2,009 employees in the Raleigh-Durham area, owns 50 percent, plus one of LG-Nortel. The company did not say how much it hopedx to be paid for its stakin LG-Nortel.
"LG-Nortel is a successful business with an accomplishefleadership team, a culture of innovation, a dedicated employee base and a drivse to succeed," said Mike Zafirovski, Nortel’s president and CEO. "Ass we work to evaluate the ultimate path forward for all of our this decision willallow LG-Nortekl to embark on the next phasr of its journey and realize its full potential." Nortel says it will file a motion asking the Ontario Superiorf Court of Justice to approvee a sale process that has been agreed to with LG Electronicxs and that appoints to help find a buyer.
LG Electronicsz and the Ontario court also must give their OK for any saleof Nortel’zs stake in LG-Nortel. Nortel in Canada and the Unitedf Stateson Jan. 14, a day before the compang was to makea $107 million interesrt payment on part of Nortel’es more than $1 billionb in debt. he Canadian court has since grantedx Nortel to come up with a satisfactorhreorganization plan. Speculation has focused on Nortel selling offone – of its two biggest business units to improves its balance sheet, but no deal has yet been reached.
A one-timse cornerstone of Research Triangle Parkwith 9,0000 Raleigh-Durham employees at its Nortel saw its fortunes go downhilk when the technology bubble burst in 2000 and demancd steadily dried up from phone companiews for Nortel’s products. The company also ran into troublew with an accounting scandal that led to and the resignationd ofthe company’s top including then-CEO Frank Dunn.