Nortel Networks Restructuring
On September 14th, 2009, Nortel Networks announced a successful auction of substantially all of the assets of Nortel’s global Enterprise Solutions business as well as the shares of Nortel Government Solutions Incorporated and DiamondWare, Ltd. with Avaya Inc. emerging as the winning bidder.
The sale is subject to court approvals in the U.S., Canada, France and Israel as well as regulatory approvals, other customary closing conditions and certain post-closing purchase price adjustments. In some EMEA jurisdictions this transaction is subject to information and consultation with employee representatives.
On September 16th, 2009, Nortel announced that at a joint hearing, its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc., obtained orders from the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice approving the asset and share sale agreement with Avaya Inc. ("Avaya") for the sale of Nortel's North American, Caribbean and Latin American and Asian Enterprise Solutions business. Certain other Nortel subsidiaries, including Nortel Networks U.K. Limited, have entered into a separate asset sale agreement with Avaya for the Europe, Middle East and Africa (EMEA) portion of Nortel's Enterprise Solutions business. Under the agreements, Avaya will pay an aggregate purchase price of US$900 million in cash and fund an additional pool of US$15 million for an employee retention program.
We at Algo Communication Products Ltd. want to assure you that our commitment to you and your network performance remains unchanged. Nortel remains focused on maintaining the high service/product performance levels that our customers are accustomed to. During the period between now and close of the sale, Algo will continue to deliver on our commitments and provide high levels of customer service and support. We will ensure that you can fully leverage your existing Nortel investment as you benefit from the complimentary capabilities of the Nortel and the Avaya portfolio of products and services.
If you have any questions or concerns, do not hesitate to contact your Algo Representative or call 604-438-3333