Nortel Networks - Canada - Chance oder Zock?!?

Six weeks ago (June 19 to be exact), Nortel (NRTLQ.PK) issued a press release about the proposed sale of its CDMA wireless business and LTE R&D unit to Nokia Siemens (NOK/SI).

While that was major news, the more significant development was Nortel disclosing that “it is advancing in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales.”

At the time, the assumption was this marked the end of Nortel because, after all, a company can’t exist without any businesses.

Today, however, there appears to be a growing question about whether Nortel is going to disappear. A story in Friday’s National Post asked whether Nortel could emerge from bankruptcy protection as a licensee of patents – a potentially lucrative entity given Nortel owns more than 1,300 patents.

“It was never stated categorically that they were going to liquidate the entire company,” Richard Powers, associate dean at the Rotman School of Management at the University of Toronto told the National Post. “It was always thought the Nortel name would not drop off the board and that it might retain some format to continue in a downsized version of what it was.”

While it’s true Nortel “never stated categorically” it was selling everything, everyone figured this was the case…and it may still be the case.

That said, it is interesting to consider whether Nortel’s restructuring is taking a different path other than a complete asset sale.