Nortel's directors meet Tuesday night in Toronto to decide if the company should pay about $107 million in interest debt on bonds, or file for bankruptcy protection in both Canada and the U.S., CBC News has learned.

Paying would use up about 10 per cent of the cash available to Nortel in North America.

The interest is due Thursday on debt issued as company bonds.

There is speculation the Toronto- headquartered company may not make the payments and will seek protection from creditors.

Bankruptcy protection would allow the company to do some drastic restructuring or prepare for the rapid sale of some of its assets.

But it could also make the company a target for a quick sale.

The company’s stock fell 24.51 per cent on Tuesday to 38.5 cents a share.

At the beginning of last year, Nortel stock was trading at more than $12.50.

Tamas Koplyay, who teaches business strategy at the University of Quebec in Gatineau, predicted five years ago that Nortel would eventually go bankrupt.

"The signs were there. I think what's lacking at Nortel, sorry to say, is the quality of management, no vision, no call to action, no leadership, just maintenance," said Koplyay.

The company has seen 16 rounds of cuts over the past decade.

Nortel employs about 6,000 workers across Canada.