It's old news now. Last week, Nortel filed for creditor protection to undertake a business and financial restructuring. This process will put Nortel on sound financial footing once and for all, and represents the fastest and most effective means to do this.
Some people confuse what's going on (seeking creditor protection), with going out of business or liquidation as is happening, for example, with Circuit City.
Brian Riggs of Current Analysis does a good job distinguishing, between US Chapter 11 Bankruptcy (what Nortel is undertaking), and Chapter 7 Bankruptcy (what is happening to Circuit City). He cites the example of Kmart which filed for Chapter 11 Bankruptcy in Jan02, concluded that process in May03 and went on to acquire rival Sears, Roebuck and Co in 2004/05.
For Nortel, it has sufficient liquidity to run its operations and restructure its business while continuing to deliver innovation to customers.
The end point? Nortel plans to emerge more focused, financially sound and competitive.