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TORONTO (Reuters)—Ailing telecom equipment maker Nortel Networks Corp, which filed for bankruptcy protection earlier this year, is looking to break itself up by selling off major divisions, the Globe and Mail reported on Thursday.
Instead of trying to rebuild itself under bankruptcy protection, the newspaper reported the company is considering offers from potential buyers who are interested in buying its wireless-gear business, as well as a separate division that manufactures office telecom equipment.
The newspaper quoted one unnamed source familiar with the discussions as saying "there is a process underway," while another source told the newspaper: "The consensus all along was that it would be carved up."
Nortel spokesman Mohammed Nakhooda declined to comment on the report.
In January, the company filed for bankruptcy protection in Canada, the United States and elsewhere, in a bid to try to restructure while keeping creditors at bay.
It had about $2.4 billion in cash when it sought protection and about $4.5 billion in long-term debt.
(Reporting by Jennifer Kwan, editing by Dave Zimmerman)
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