Nortel Wins OK From Courts To Sell Enterprise Unit
September 16 2009 - 6:52PM
Dow Jones News
Nortel Networks Corp. (NRTLQ) late Wednesday said Nortel
Networks Ltd. and certain of its subsidiaries have obtained
approvals from courts in Delaware and Ontario to sell its
enterprise unit to privately held Avaya Inc. (AV).
Avaya had previously agreed to pay $900 million in cash for the
unit, which makes phone systems used in offices of companies,
governments and other institutions. The approval from the courts
also covers Avaya's agreement to pay up to $15 million to retain
key employees in the enterprise unit.
Toronto-based Nortel filed for bankruptcy earlier this year, and
has been selling off key parts of its business to pay
creditors.
-By Carla Mozee, 415-439-6400; AskNewswires@dowjones.com