Nortel Networks filed for bankruptcy protection on Wednesday in Delaware, a day before the telecommunications company was due to make a $107-million interest payment on its debt. (CBC)

Organizers of the 2010 Vancouver Olympics are playing down the potential impact of the financial crisis facing Nortel, a major sponsor of the upcoming Games.

The telecommunications company filed for bankruptcy protection in the United States and Canada on Wednesday, the day before it was due to repay billions of dollars in debt.

In a short statement released on Wednesday morning, officials at the Vancouver Organizing Committee for the Olympics said the financial stress on the company should not affect the financing and technological infrastructure of the upcoming Games.

"Today, Nortel reaffirmed its commitment to its Vancouver 2010 sponsorship. Much of Nortel's commitments to the Games have been delivered and will be in place by May," said Ward Chapin, VANOC's chief information officer.

"Like many companies, Nortel is working through challenging economic times. Over the past years, Nortel has been an exceptional partner, and has demonstrated a strong commitment to VANOC and the Olympic movement. As a partner, they have kept us informed every step of the way," said Chapin.

A 2007 news release from Nortel trumpeted its sponsorship agreement, announcing its equipment was to be used "end to end" in the 2010 Games

The release said the telecommunications innovator was to provide the internal networks for 15 Games venues in Vancouver and Whistler, as well as at the VANOC headquarters.

Concerns about London 2012

Nortel's decision to file for bankruptcy protection also raised concerns across the Atlantic in London, where the company signed on in July as a tier one sponsor of the 2012 Olympic Games, committing to provide about $71 million and the network infrastructure to operate communications with partner British Telecom.

"We are aware of the situation and working through it with Nortel," London 2012 organizers said in a statement.

Under the sponsorship deal, Nortel agreed to supply secure networks, local wireless networks, call centre and fixed telephone infrastructure, to support more than 205 international sporting organizations, 20,000 worldwide media members, nine million spectators and more than four billion television viewers of the London Games.

Olympic officials in London said they were hopeful that Nortel would be able to continue to support the London Olympics in its existing capacity either by successfully restructuring or by finding a buyer.