MAKATI CITY, Philippines--While Nortel Networks conducts its restructuring proceedings after filing for Chapter 11 last month, the company said it would continue running operations in all offices worldwide, a senior executive of the network equipment provider said.
In US courts, filing for chapter 11 means a company is filing for bankruptcy and is proposing a reorganization to keep its business alive and pay its creditors. This is open to corporations.
In an interview, Nortel Asia Vice President for Carrier Sales Anthony McLachlan told reporters here that there are no changes in the company's local sales and operations.
McLachlan also denied reports that the company was going bankrupt, as he has been explaining to customers and partners what the credit protection filing meant.
"The credit protection filing is aimed at addressing the legacy financial aspects in the balance sheets. These have been in the balance sheets for many years, even before the economic downturn," McLachlan said.
He said the company has enough cash to operate, referring to the company's $2.4 billion unaudited consolidated cash balance that would be used for Nortel's restructuring.
"We deliberately moved to credit protection while we have cash to run our business. Our customers and partners are reassured of that. Our job is to focus on explaining to customers what we're doing, separating fact from fiction," McLachlan said.
Meanwhile, Nortel Philippines Account Director Laura Lariosa said their 30 employees in both their sales and operations divisions continue to work and are constantly in talks with customers regarding the status of their restructuring procedures.
"Customers were of course anxious about the announcement but we're doing our best to explain to them about the situation, and remain transparent," Lariosa said.
Nortel filed for credit protection, also known as Chapter 11, on January 14 in the US, Canada and the United Kingdom.
Nortel had earlier sent a statement to local media that Philippine office, as well as other Asian affiliates, would continue to operate normally as Nortel works on its restructuring program.
NOTE: Confusion here Nortel is not filling bankrupcy just nortel is filling bankrupcy under Chapter 11. So i hope Nortel will come up with new restructing and will be hit in the market. So from my view of point nortel has taken good decision of filling bankrupcy under chapter 11 for coming up as it was in old days. I pray to GOD also to come up because i am working for nortel that is really intresting work, Too much dedicated employees in nortel as i never saw in my life in other organization.