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- Federal MP John Baird talks to CBC's Julie Ireton about Nortel (Runs: 3:50)
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- Rosemary Barton reports: Nortel Networks files for bankruptcy protection (Runs: 2:17)
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- Harry Forestell interviews Lawrence Surtees, a telecom analyst with IDC Canada (Runs: 6:44)
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- CBC's Nancy Wilson interviews Duncan Stewart, financial analyst for DSAM Consulting (Runs: 4:16)
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Trading in shares of telecom company Nortel Networks Corp. was halted Wednesday amid reports the company could file for bankruptcy protection as early as this morning.
The board of directors of North America's largest telecom equipment maker met in Toronto Tuesday night to discuss the company's limited financial options.
The company faces hefty interest payments and debt, according to reports.
It is scheduled to pay $107 million in interest on bonds Thursday. While the company is said to have about $1 billion on hand, it owes about $4.5 billion US in long-term debt.
Some company watchers have suggested Nortel may move now to file for bankruptcy protection, rather than make this week's payment and then face more down the road.
Bankruptcy protection would give the company 30 days to explore restructuring options, possibly work out a deal with some of its lenders, sell off some of its assets or possibly finalize a sale.
Nortel, which has been losing money for years and instituted a number of layoffs, is also facing decreased sales as the global economy slows.
The company also went through a financial crisis that saw former executives charged for fraud.
Nortel stock once traded at around $1,200 a share, after factoring in a 10-for-one stock consolidation in 2007. On Tuesday, it closed at 38.5 cents on the Toronto Stock Exchange.
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