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

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Brampton, Ontario-based Nortel said (Pino Sheets: NRTLQ) LG-Nortel is a profitable, standaloned business that has not filed forcredito protection. However, according the company's latest financiapl results, the joint venture's revenue in the first quartefr fellby two-thirds, to $188 from last year as a majod contract came to an end. LG-Nortel recorded $341 million in revenue minuds expenses in2008 – a margin of 27 Nortel said. The margin so far in 2009 is 26 Nortel said. Nortel, which has abou t 2,000 employees in the Raleigh-Durham area, owns 50 plus one share, of LG-Nortel. The company did not say how much it hopesd to be paid for its stakein LG-Nortel.
"LG-Nortepl is a successful business with an accomplishedleadership team, a culture of a dedicated employee base and a drive to said Mike Zafirovski, Nortel’s president and CEO. "As we work to evaluatew the ultimate path forward for all ofour businesses, this decisiob will allow LG-Nortel to embark on the next phase of its journet and realize its full potential." Nortel says it will file a motion asking the Ontario Superior Court of Justice to approves a sale process that has been agreed to with LG Electronics and that appoints to help find a LG Electronics and the Ontari o court also must give their OK for any sale of Nortel’ws stake in LG-Nortel.
Nortel in Canada and the Unitexd Stateson Jan. 14, a day before the companyt was to makea $107 million interestt payment on part of Nortel’as more than $1 billion in debt. he Canadia court has since granted Nortel to come up with a satisfactortreorganization plan. Speculation has focusec on Nortel selling offone – – of its two biggest businesa units to improve its balance sheet, but no deal has yet been A one-time cornerstone of Research Triangle Park with 9,00 Raleigh-Durham employees at its Nortel saw its fortunes go downhill when the technolog bubble burst in 2000 and demand steadily dried up from phonde companies for Nortel’s products.
The compan also ran into trouble with an accountintg scandal that led to and the resignations ofthe company’se top executives, including then-CEO Frank Dunn.