Nortel Networks (fka NRTLQ)

[Kymmer]

NRTLQ News:


Nortel Obtains Further Extension of Stay Period Under CCAA

TORONTO, ONTARIO, Apr 14, 2010 (MARKETWIRE via COMTEX) -- Nortel(1) Networks
Corporation (NRTLQ) announced today that it, its principal operating subsidiary
Nortel Networks Limited and its other Canadian subsidiaries that filed for
creditor protection under the Companies' Creditors Arrangement Act have obtained
an order from the Ontario Superior Court of Justice ("Canadian Court") further
extending, to July 22, 2010, the stay of proceedings that was previously granted
by the Canadian Court. The purpose of the stay of proceedings is to provide
stability to the Nortel companies to continue with their divestiture and other
restructuring efforts.

About Nortel

For more information, visit Nortel on the Web at http://www.nortel.com. For the
latest Nortel news, visit http://www.nortel.com/news.

Certain statements in this press release may contain words such as "could",
"expects", "may", "should", "will", "anticipates", "believes", "intends",
"estimates", "targets", "plans", "envisions", "seeks" and other similar language
and are considered forward-looking statements or information under applicable
securities laws. These statements are based on Nortel's current expectations,
estimates, forecasts and projections about the operating environment, economies
and markets in which Nortel operates. These statements are subject to important
assumptions, risks and uncertainties that are difficult to predict, and the
actual outcome may be materially different. Nortel's assumptions, although
considered reasonable by Nortel at the date of this press release, may prove to
be inaccurate and consequently Nortel's actual results could differ materially
from the expectations set out herein.

Actual results or events could differ materially from those contemplated in
forward-looking statements as a result of the following: (i) risks and
uncertainties relating to the Creditor Protection Proceedings including: (a)
risks associated with Nortel's ability to: stabilize the business and maximize
the value of Nortel's businesses; obtain required approvals and successfully
consummate pending and future divestitures; ability to satisfy transition
services agreement obligations in connection with divestiture of operations;
successfully conclude ongoing discussions for the sale of Nortel's other assets
or businesses; develop, obtain required approvals for, and implement a court
approved plan; resolve ongoing issues with creditors and other third parties
whose interests may differ from Nortel's; generate cash from operations and
maintain adequate cash on hand in each of its jurisdictions to fund operations
within the jurisdiction during the Creditor Protection Proceedings; access the
EDC Facility given the current discretionary nature of the facility, or arrange
for alternative funding; if necessary, arrange for sufficient
debtor-in-possession or other financing; continue to have cash management
arrangements and obtain any further required approvals from the Canadian Monitor,
the U.K. Administrators, the French Administrator, the Israeli Administrators,
the U.S. Creditors' Committee, or other third parties; raise capital to satisfy
claims, including Nortel's ability to sell assets to satisfy claims against
Nortel; maintain R&D investments; realize full or fair value for any assets or
business that are divested; utilize net operating loss carryforwards and certain
other tax attributes in the future; avoid the substantive consolidation of NNI's
assets and liabilities with those of one or more other U.S. Debtors; attract and
retain customers or avoid reduction in, or delay or suspension of, customer
orders as a result of the uncertainty caused by the Creditor Protection
Proceedings; maintain market share, as competitors move to capitalize on customer
concerns;

operate Nortel's business effectively under the new organizational structure, and
in consultation with the Canadian Monitor, and the U.S. Creditors' Committee and
work effectively with the U.K. Administrators, French Administrator and Israeli
Administrators in their respective administration of the EMEA businesses subject
to the Creditor Protection Proceedings; continue as a going concern; actively and
adequately communicate on and respond to events, media and rumors associated with
the Creditor Protection Proceedings that could adversely affect Nortel's
relationships with customers, suppliers, partners and employees; retain and
incentivize key employees and attract new employees as may be needed; retain, or
if necessary, replace major suppliers on acceptable terms and avoid disruptions
in Nortel's supply chain; maintain current relationships with reseller partners,
joint venture partners and strategic alliance partners; obtain court orders or
approvals with respect to motions filed from time to time; resolve claims made
against Nortel in connection with the Creditor Protection Proceedings for amounts
not exceeding Nortel's recorded liabilities subject to compromise; prevent third
parties from obtaining court orders or approvals that are contrary to Nortel's
interests; reject, repudiate or terminate contracts; and (b) risks and
uncertainties associated with: limitations on actions against any Debtor during
the Creditor Protection Proceedings; the values, if any, that will be prescribed
pursuant to any court approved plan to outstanding Nortel securities and, in
particular, that Nortel does not expect that any value will be prescribed to the
NNC common shares or the NNL preferred shares in any such plan; the delisting of
NNC common shares from the NYSE; and the delisting of NNC common shares and NNL
preferred shares from the TSX; and

(ii) risks and uncertainties relating to Nortel's business including: the
sustained economic downturn and volatile market conditions and resulting negative
impact on Nortel's business, results of operations and financial position and its
ability to accurately forecast its results and cash position; cautious capital
spending by customers as a result of factors including current economic
uncertainties; fluctuations in foreign currency exchange rates; any requirement
to make larger contributions to defined benefit plans in the future; a high level
of debt, arduous or restrictive terms and conditions related to accessing certain
sources of funding; the sufficiency of workforce and cost reduction initiatives;
any negative developments associated with Nortel's suppliers and contract
manufacturers including Nortel's reliance on certain suppliers for key optical
networking solutions components and on one supplier for most of its manufacturing
and design functions; potential penalties, damages or cancelled customer
contracts from failure to meet contractual obligations including delivery and
installation deadlines and any defects or errors in Nortel's current or planned
products; significant competition, competitive pricing practices, industry
consolidation, rapidly changing technologies, evolving industry standards,
frequent new product introductions and short product life cycles, and other
trends and industry characteristics affecting the telecommunications industry;
any material, adverse affects on Nortel's performance if its expectations
regarding market demand for particular products prove to be wrong; potential
higher operational and financial risks associated with Nortel's international
operations; a failure to protect Nortel's intellectual property rights; any
adverse legal judgments, fines, penalties or settlements related to any
significant pending or future litigation actions; failure to maintain integrity
of Nortel's information systems; changes in regulation of the Internet or other
regulatory changes; and Nortel's potential inability to maintain an effective
risk management strategy.

For additional information with respect to certain of these and other factors,
see Nortel's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other
securities filings with the SEC. Unless otherwise required by applicable
securities laws, Nortel disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks

Contacts:
Nortel
Jamie Moody
972-684-7167
[e-mail]
http://www.nortel.com




SOURCE: Nortel
mailto:[e-mail]
http://www.nortel.com


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