Nortel Files for Bankruptcy Protection!

15 01 2009

In another incident of the worsening global recession Nortel Networks Corp, North America’s biggest maker of telephone equipment, filed for bankruptcy protection in Wilmington, Delaware, amid the global credit crunch and declining sales.

Nortel, based in Toronto, had more than $1 billion in assets and debt, according to today’s Chapter 11 filing of its US subsidiary. The company said that several Canadian affiliates will also seek court protection.

Canadian investor Gavin Graham recalls the time when Nortel Networks Corp. was so big, with a market value of almost $250 billion, that fund managers had to own shares just to keep up with the benchmark index.

“You were pilloried if you didn’t own the stock,” said Graham, who helps oversee more than $30 billion as director of investments at Bank of Montreal Asset Management in Toronto. “Nowadays, I try not to embarrass people by asking who still owns Nortel.”

Nortel, North America’s biggest maker of telephone equipment, in business for 113 years, filed for bankruptcy protection today, capping one of the greatest corporate collapses in Canadian history. The stock fell 69 percent to 12 cents by 4:15 p.m. in trading today on the Toronto Stock Exchange, for a market value of C$60 million ($48 million).

At its peak in 2000, Nortel had annual revenue of $28 billion and employed about 93,000 people in more than 150 countries. The stock traded as high as C$1,245, adjusting for stock splits, for a market value of C$366 billion, making it the biggest company in Canada. The shares quadrupled in 1999 on expectations the Toronto-based phone equipment maker would benefit from the surge in demand for Internet-based technology.

Nortel accounted for 37 percent of the Toronto Stock Exchange 300 Composite Index, as it was called then. That created a problem for Canadian mutual fund managers, since Canadian law bars mutual funds from holding more than 10 percent of assets in any one stock.

Source:  Bloomberg

See also a timeline of events in the company here.

Advertisements




Happy New Year!

7 01 2009

Happy New Year everyone…its 2009 btw in case you are still hungover!

First off, apologies are in order. I haven’t updated my blog in what seems like ages and truthfully it’s not that I have been lazy.. its just that I have been taking a much needed break from my computer, my work, my routine… not that blogging is a routine but booting up a PC does seem like one!

But now I am back to the grind, the work, the traffic, the mess, the chaos… so rest assured all my frustrations will be manifested pretty regularly in this blog…apart from the other stuff of course.

Thanks to all my readers who have read my blog so far, I hope you keep coming back and bring more people with you…I ll do my best to keep this as random as possible.

So what have I been upto..as I said I was on vacation but while I was on this much needed hiatus…I have noticed that a lot of new events have taken place, but yet little has changed.

No new headway with Pakistan despite the world (except China & Brazil) being on our side, security is still bad despite the recent bombings in Assam, Chidambaram is our new Home Minister but yet you do feel the same vulnerability;  Traffic is bad everywhere despite new flyovers; pollution has gotten worse despite stricter regulatory norms in place, economy is still bad despite BPO’s hiring sprees; sport still struggles in India despite new impetus provided by our boxing and shooting stars…

the same things get repeated all over again…things move so slowly and it frustrates me…the common man!

I need visionaries, i need people to inspire me, I need someone to look up to in my country…I need hope!

While I may sound pessimistic about things.. I do however keep myself happy by enjoying the the little things …

Watching India beat England for example…or SA beating AUS.. A good book (Arvind Adiga’s – White tiger…which I promise Ill review in my future posts)…Formula 1, Driving on a well laid road (which is a rarity in most cities), a bag of potato chips, drinking beer, watching House MD or Big Bang Theory…

ahh the simple things…

So with this lack of contribution of mine to my country Id like to propose the following poll..

No matter what your answers are…have a great 360 odd days ahead!





Formula 1 – A distant Dream..

8 12 2008

The news is abuzz as far F1 is concerned.  Honda pulls out of the sport citing recession and increasing costs. Their spending increased about 30% from last year with a total of approximately $ 300 million. Sad news indeed…but thats the state of the economy now. Even big companies like Honda can’t survive the bad times.

However that’s not why I have written this post. What I wanted to share was this..

The Spa Exit

The Spa Exit

This is probably the closest I will get to a Formula 1 track..

We were on our way to Luxemborg from Netherlands and we passed the Belgian Grandprix Circuit exit on the freeway…and I thought someday Ill be take that exit and watch a race in person.

but right now it remains..but a distant dream..

But all was not lost…Luxemborg is a beautiful place and a must see stop for poeple travelling in Europe. Here is a picture taken by Tilak who was travelling with us.

What a view!

What a view!

It sums up the place quite nicely I think.