Nortel Insider – by Desk Jockey

The view from one Desk Jockey

The end of the line?

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endoflineHere we are, barely two weeks into the new year, and the drama has reached an all time high with Nortel. Things have gone from bad to worse (or perhaps from worse to worst) this week, as the news of a pending interest debt payment, to the tune of $107 million, became widely known.

First, the CBC Radio aired a piece on the many woes that Nortel employees have been facing, and continue to face, something that we’ve been continually covering, being an employee-focused blog.  CBC also penned a piece about the future of Nortel.

This negative news came on the heel of perhaps the last stock “surge” NT will ever see.  On Friday (Jan. 9th), NT jumped 30% to to close at $0.38 US before closing even higher this Monday.  So perhaps it was inevitable that it would retreat today.

Or, of course, this may have something to do with the fact that the Board of Directors is meeting tonight to discuss a possible pre-emptive bankruptcy.  The idea is that to avoid the costly $107 million debt interest payment on Thursday, Nortel would file for bankruptcy protection, showing that even the BoD has come to believe in the inevitable.

This is not good news.  Further tainting the whole tragic affair has been how the Nortel executive team has managed the situation.  They have consistently shown contempt for their employees, treating them as children not capable of hearing the truth and have done everything in their power to cover up the facts.  Time and again, they have shown themselves to be more concerned with managing perceptions and distortions rather than improving anything.

Wait patiently and eagerly await what news awaits us tomorrow – if anything is true, it’s that the anxiety of not knowing may be coming to an end – for better or for worse.

Written by Desk Jockey

January 13, 2009 at 7:37 pm

Posted in Uncategorized

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