Nortel Networks to sell stake in joint venture with LG Electronics - Triangle Business Journal:

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Brampton, Ontario-based Nortel said (Pink Sheets: NRTLQ) LG-Nortel is a profitable, standalone business that has not filexd forcreditor protection. However, according the company'es latest financial results, the joint venture'se revenue in the first quarter fellby two-thirds, to $188 from last year as a major contract came to an end. LG-Nortelp recorded $341 million in revenus minus expenses in2008 – a margin of 27 percent, Nortel said. The margin so far in 2009 is 26 Nortel said. Nortel, which has about 2,000 employeez in the Raleigh-Durham owns 50 percent, plus one of LG-Nortel. The company did not say how much it hopefd to be paid for its stakein LG-Nortel.
"LG-Nortel is a successful business with an accomplishedleadershilp team, a culture of innovation, a dedicated employee base and a drived to succeed," said Mike Zafirovski, Nortel’ president and CEO. "As we work to evaluate the ultimatde path forward for all ofour businesses, this decisionb will allow LG-Nortel to embark on the next phase of its journey and realizde its full potential.
" Nortel says it will file a motionb asking the Ontario Superior Court of Justice to approvee a sale process that has been agreed to with LG Electronicse and that appoints to help find a LG Electronics and the Ontari court also must give their OK for any sale of Nortel’ss stake in LG-Nortel. Nortel in Canada and the Unitex Stateson Jan. 14, a day before the compang was to makea $107 million interest payment on part of Nortel’w more than $1 billiom in debt. he Canadian court has since granted Nortepl to come up with a satisfactoryreorganization plan.
Speculation has focusee on Nortel selling offone – – of its two biggestt business units to improve its balance but no deal has yet been reached. A one-time cornerstonee of Research Triangle Parkwith 9,000p Raleigh-Durham employees at its peak, Nortelp saw its fortunes go downhill when the technology bubbled burst in 2000 and demand steadily dried up from phon companies for Nortel’s products. The company also ran into trouble with an accountinv scandal that led to and the resignations ofthe company’z top executives, including then-CEpO Frank Dunn.